Question

Chenelle has a savings account that earns 5% simple interest each year. She can only deposit small amounts into her account each month. Should Chenelle keep her account open even though she can deposit only a small amount each month?

Answer 1

Answer:

Yes, she should.

Step-by-step explanation:

5% may not seem like a lot. Lets say she deposits $20 per month. That's $240 a year. Lets also say you keep this for 6 years, you'll have $72 from interest. The more amount she puts in the more she'll gain.

First, converting R percent to r a decimal

r = R/100 = 5%/100 = 0.05 per year,

then, solving our equation

I = 240 × 0.05 × 6 = 72

I = $ 72.00

The simple interest accumulated

on a principal of $ 240.00

at a rate of 5% per year

for 6 years is $ 72.00.