Respuesta :
Answer:
If the account paid a monthly interest instead of annual, the answer would be $162.12
Step-by-step explanation:
PS: THIS ISN'T THE ANSWER TO THIS QUESTION BECAUSE IT STATED 'ANNUAL INTEREST' BUT I USED MONTHLY INTEREST INSTEAD. HOPE THIS HELPS SOMEONE ELSE THOUGH.
FIRST MONTH
Original value is $5350.00
Percentage increase(interest gained) is 1%
Total value after 1st month is equal to the Original Value + The interest
$5350.00 x 0.01 (0.01 = 1/100 = 1%) = $53.50
Do not try and do this altogether as you will get the answer wrong. Instead calculate month by month.
At the end of the first month, he has ($5350.00 + $53.50) = $5403.50
SECOND MONTH
Original Value is $5403.50
Percentage increase(interest gained) is still 1%
Total value after the 2nd month is equal to the Original Value+The interest
$5403.50 x 0.01 = $54.035
ALWAYS round off to the nearest cent before continuing.
At the end of the second month, he has ($5403.50 + $54.04) = $5457.54
THIRD MONTH
Original Value is $5457.54
Percentage increase(interest gained) is 1%
Total value after the 3rd month is equal to the Original Value + The interest
$5457.54 x 0.01 = $54.5754 = $54.58
When rounding off, if the number is 5 or higher, add 1 to the digit before it.
At the end of the third month, he has ($5457.54 + $54.58) = $5512.12
The question asks, how much interest did his money earn. If you calculated like how I did above, picking the interest should be easy.
Simply add, the first month's interest, to the second month's interest, to the third month's interest.
$53.50 + $54.04 + $54.58 = $162.12
