Question

Natsumi opens a savings account that earns 0.08% interest on the last day of the month. Her initial deposit is $75 on the first day of the first month, and she deposits another $75 on the first day of each month after that.

How much money would be in Natsumi's account at the end of the first day of the 18th month?
Round your final answer to the nearest hundredth.

Answer 1

Because she doesn't receive any interest on the last month, but puts money in, we can write this equation:

18(75) + 17(0.08(75))

1350 + 1.36(75)

1350 + 102

She will have $1452 On the eighteenth month