I deposited $600 in an account which pays 1% interest per month. Two months later, I deposited another $600 in the same account. How much would be in the account after a further two months?

1 Answer
Jim G.
Aug 22, 2017

#$1236.48#

Explanation:

#"note interest is usually only given on whole number of "#
#"dollars"#

#1%=1/100=0.01#

#"deposit "=$600#

#color(blue)"interest "=600xx0.01=$6.00#

#"amount in deposit "=600+6=$606.06#

#color(blue)"interest "=606xx0.01=$6.06#

#"amount in deposit "=606.06+6.06=$612.12#

#"end of 2 months"#
#color(red)"--------------------------------------------------------"#

#"deposit is now "=$612.12+$600=$1212.12#

#color(blue)"interest "=1212xx0.01=$12.12#

#"amount in deposit "=1212.12+12.12=$1224.24#

#color(blue)"interest "=1224xx0.01=$12.24#

#"amount in deposit "=1224.24+12.24=$1236.48#

#"end of further 2 months"#
#color(red)"------------------------------------------------------------"#

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