Answer:
$339.00
Step-by-step explanation:
If you put $25 each month into a savings account that paid a simple interest rate of 6.5% each year, how much would you have in your account at the end of two years?
We solve the above question using the Equation:
A = P(1 + rt)
P = Principal = Amount deposited each month = $25
The amount deposited in a year = $25 × 12 months = 300
Calculation:
First, converting R percent to r a decimal
r = R/100 = 6.5%/100 = 0.065 per year.
Solving our equation:
A = 300(1 + (0.065 × 2)) = 339
A = $339.00
Therefore, you would have $339 in your account after 2 years
