Question

Philomena put some money in a 1-year CD that compounds interest monthly, and she made $14.06 in interest the first month. If the interest rate of the CD stays the same, how much will she make in interest the second month?

Answer 1

Answer:

Philomena would make more than $14.06 interest in the second month

Step-by-step explanation:

We are not told how much Philomena put initially, but what we are told is that she has more now as she has been making interests.

This means that if the percent interest remains the same, the amount will definitely have to be more.

For example, let's say we had $10 and we had 10% interest that means we now add $1 to make $11. Since we now have $11, 10 percent of that is $1.1. so now we have $11 + $1.1 = $12.1 which is more than $11.

Thus,Philomena would make more than $14.06 interest in the second month.