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A savings account earns 8.4% (APR) interest calculated monthly, paid into the account at the end of 6 months. Cooper deposits $200 into the account at the beginning of the first month. At the end of each month, he deposits an additional $100 into the account. How much interest will Cooper have earned after 6 months?
Answer: $18.90

Respuesta :

The answer is $18.90, but you already solved it. 
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Answer:

$ 18.90

Explanation:

Interest = 8.4 %

The principal = $ 200

The time = 6 months

Interest = [tex]\frac{principal * rate * time}{100}[/tex]

or A = P (1 + rt)

       = 200 (1 + 0.0864*0.5)

       = $ 208.64

We do the same with $ 100

this gives: $ 104.32

Adding the amounts gives: $ 208.64 + $ 104.32

                                          =  $ 312.96

$ 312.96 - $ 280 = $ 18.90

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