Joey chose to invest his money in an account that pays 2.3% annual interest compounded monthly. Joey’s initial investment was $100. Each month after the first deposit, he deposits another $100. Joey wants to know how much money he has after the first month. How much interest would he earn the first month? Would Joey add the interest to the $100 initial deposit or subtract the interest from the $100 initial deposit? The balance with the first month’s interest would be . Since Joey makes a deposit of $100 at the start of the second month, what is the balance after that deposit is made? Identify the values Joey would use to calculate the interest for the second month: P = APR = t = The amount of interest earned in the second month would be . At the end of the second month, the balance would be . After the deposit for the third month, the balance would be .
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Joey chose to invest his money in an account that pays 2.3% annual interest compounded monthly. Joey’s initial investment was $100. Each month after the first deposit, he deposits another $100. Joey wants to know how much money he has after the first month.
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How much interest would he earn the first month?
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Would Joey add the interest to the $100 initial deposit or subtract the interest from the $100 initial deposit?
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The balance with the first month’s interest would be .
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Since Joey makes a deposit of $100 at the start of the second month, what is the balance after that deposit is made?
- Identify the values Joey would use to calculate the interest for the second month:
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P =
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APR =
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t =
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The amount of interest earned in the second month would be .
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At the end of the second month, the balance would be .
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After the deposit for the third month, the balance would be .
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