Question

You consistently deposit $250 into a savings account on the 15th of each month, and the account earns a 2.5% apr. how much is the balance of your savings account at the end of the third full month? round to the nearest penny.

Answer 1

To calculate the balance of the savings account at the end of the third month, you need to consider both the monthly deposits and the interest earned. The balance of the savings account at the end of the third full month is $765.60.

Step-by-step explanation:

To calculate the balance of the savings account at the end of the third month, we need to consider both the monthly deposits and the interest earned. First, let's calculate the interest earned for three months:

1. Convert the annual interest rate to a monthly rate by dividing it by 12: 2.5% / 12 = 0.0208
2. Calculate the interest earned for three months: $250 * 0.0208 * 3 = $15.60

Now, let's add the interest to the total amount of deposits: $250 * 3 + $15.60 = $765.60

Therefore, the balance of the savings account at the end of the third full month is $765.60.