Question

In January, Harry and Belinda Johnson had $10,660 in monetary assets: $1,100 in cash on hand; $1,200 in a statement savings account at First Credit Union earning 1.0 percent interest; $4,000 in a statement savings account at the Far West Savings Bank earning 1.1 percent interest; $2,260 in Homestead Credit Union earning a dividend of 1.3 percent; and $2,100 in their regular checking account at First Credit Union earning 1 percent.

If the Johnsons could put most of their monetary assets ($10,660) into a money market account earning 2.3 percent, how much would they have in the account after one year? Round your answer to the nearest dollar.

Answer 1

the amount after one year is $10,905

Step-by-step explanation:

The computation of the amount after one year is shown below:

= Monetary assets ×(1 + earning interest)

= $10,660 × (1 + 0.023)

= $10,660 × 1.023

= $10,905

Hence, the amount after one year is $10,905

We simply applied the above formula