Question

1. Jacob opens an online-only savings account and deposits $50 each month. The annual interest rate is

2.5 percent. Interest is compounded monthly. What is the total amount in the account after 5 months?

Answer 1

Explanation:

Deposit =$50

Interest= 2.5

Duration = 5months

Total amount after 5 months =

50/100 x 2.5/1

1.25 x 5

= $6.25