Question

Piper open a savings account with $1200 that pays no interest. She deposits an additional $190 each week thereafter. How much money would piper have in the account 40 weeks after opening the account?

a) $13,600
b) $8,600
c) $14,000
d) $9,600
e) $10,600

Answer 1

Piper would have $9,600 in her account after 40 weeks, which matches option (d). This calculation is based on an initial deposit of $1200 and weekly deposits of $190. The significance of compound interest is also highlighted with an example of how a $3,000 investment grows over 40 years at a 7% annual rate.

Step-by-step explanation:

To determine how much money Piper would have in her savings account 40 weeks after opening it, we need to perform a simple calculation. Piper starts with an initial deposit of $1200 and adds $190 weekly. So, for 40 weeks, the total amount deposited from the weekly additions would be 40 weeks × $190/week = $7600. Adding this to her initial deposit of $1200 gives us:

Total after 40 weeks = Initial deposit + Total weekly deposits = $1200 + $7600 = $9200.

The option that matches this calculation is (d) $9,600.

Now, comparing this to the provided SEO keywords, it's important to highlight the power of saving money and the potential additional growth that could occur with compound interest. For example, if Piper's account paid a compound interest, over time, her savings could grow significantly more, similar to how a $3,000 investment could grow to $44,923 in 40 years at a 7% annual rate.