Question

You started a savings account by depositing $4,200. The savings account earns 1.2% APY. How much interest was earned in the first month?

Answer 1

To calculate the interest earned in the first month, use the formula: Interest = Principal x APY / 12. Given a principal of $4,200 and an APY of 1.2%, the interest earned in the first month is $42.

Step-by-step explanation:

To calculate the interest earned in the first month, you can use the formula:

Interest = Principal x APY / 12

Given that the principal is $4,200 and the APY is 1.2%, we can substitute these values into the formula:

Interest = $4,200 x 1.2% / 12

Converting the percentage to decimal form:

Interest = $4,200 x 0.012 / 12

Calculating the interest:

Interest = $42

Therefore, the interest earned in the first month is $42.

Answer 2

B

Step-by-step explanation:

Calculate the total amount in each account. Suppose 2,000 dollar is 3% deposited in a savings account that pays interest, compounded quarterly. How much money will be in the account in one year?