Question

7Luis deposits $4000 into a savings account paying 6% annual interest: What is the monthly increase as a percent?A 0.5%B 0.612%© 2%D 7.2%

Answer 1

Since the savings account has a annual interest of 6%, in order to find the monthly increase, we just need to divide the annual interest by 12 (the number of months in a year)

So we have:

`\frac{6\text{\%}}{12}=0.5\text{\%}`

So the monthly increase as a percent is 0.5%, therefore the correct option is A.