Question

You invest $500 into an account that collects 1% interest each month. If you add an additional $50 each week, what will the balance of the account be after 5 months?

Answer 1

$1555.91

Explanation:

First Month:

You start out with $500.

You add $200 in the first month, and have 700.

Multiply 700 by 1.01, to add the interest and you get 707.

Second Month:

707 + 200 = 907

907 x 1.01 = 916.07

Third Month:

916.07 + 200 = 1116.07

1116.07 x 1.01 = 1127.2307

Fourth Month:
1127.2307 + 200 = 1327.2307

1327.2307 x 1.01 = 1340.503007 (round to .50)

Fifth Month:

1340.50 + 200 = 1540.50

1540.50 x 1.01 = 1555.905

Round to 1555.905 1555.91, and there's your answer. Hope this helps!