Question

Mike deposited $850 into the bank in July. From July to December, the amount of money he deposited into the bank increases by 25% per month. What's the total amount of money in his account after December? Round your answer to the nearest penny.

Answer 1

It should be $10,062.50 because if you multiply 850 and 25% (turn to decimal .25) then you add 850 again and you get 10,062.50.

Answer 2

$1062.5

Explanation:

Since it is given that Money is increased by 25% from July to December.

Also, Mike deposit $850 in a bank account

Thus, He get money at the end of December = $850 × (100 + 25)%

⇒ Total Money = $850 × 125%

⇒ Total Money = $850 × 1.25

⇒ Total Money = $1062.5