Question

teresa deposits $6000 into a bank account that pays 2% every year. how much interest will be paid in the first 4 years?

Answer 1

60. Terese deposited $6 000 into a bank account that pay 2% every year How much will she earn if for the first 4 years: => First Year 6 000 x 0.02 => 120 => 6 000 + 120 = 6 120 => Second Year the money is 6 120 => 6 120 * .02 = 122.4 => 6 120 + 122.4 => 6 242.4 => For the third year the money is 6 242.4 => 6 242.4 x 0.02 = 124.848 => 6 242.4 + 124.848 => 6 367.248 => And for the 4th year => 6 367.248 * .02 = 127.34 => 6 494.6 So his money will be 6 494.6 dollars.