SOLUTION: John put $40 into his investment club every month for a year at a 7% annual interest rate. Interest is calculated once at the end of the year. How much money was in his account at

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Question 280100: John put $40 into his investment club every month for a year at a 7% annual interest rate. Interest is calculated once at the end of the year. How much money was in his account at the end of the year?
Found 2 solutions by josmiceli, JenniferTutors:
Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
There are 12 months in a year, so
40%2A12+=+480
.07%2A480+=+33.6
480+%2B+33.6+=+513.6
$513.60 was in the account at the end of the year

Answer by JenniferTutors(83) About Me  (Show Source):
You can put this solution on YOUR website!
If John put $40 into his investment account every month for up to a year, that would be 12 months of putting $40 into his account. If there is a 7% annual interest, first multiply 40 by 12, to find the total amount that was deposited throughout the year.
40x12=+480
So if $480 was the total amount deposited into the account, Next multiply $480 by the annual interest, 7%, which equals $33.60. Now add $33.60 to $480, that equals $513.60, this is the total amount now in his investment account.