Question 1116789: Cameron designates 10% of his monthly earnings as charitable contributions. After deducting this amount, he deposits 5% of the remaining amount into a money market account earning 2%. If Cameron’s monthly earnings are $4,800 what amount interest will he earn on his deposit each month?
Answer by addingup(3677)   (Show Source):
You can put this solution on YOUR website! 4800*.9 = 4320
4320*.05 = 216
216*.02 = 4.32 this is what he earns on his latest deposit. You don't say, but is the account earning 2% monthly? I'm assuming this is the case.
Also, this lesson is not complete unless they show you the power of compounding, that is, the cumulative interest on your savings. Did you upload the entire question?
Power of compounding:
This month: 4.32
next month: 4.32 + (4.32*0.02)
following month: 4.32 + 0.0864 + 0.088
etc.
|
|
|
