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?

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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?

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Answer 1 · 2017-08-22T18:07:15

$$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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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

Explanation:

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