Question

.
Every month Jon saves $350.00. If he earns 2.5% interest on this amount, how much will he have saved in a year?

A.
$1,050.00

B.
$4,305.00

C.
$2,795.00

D.
$4,200.00

Answer 1

Jon saves 12 × $350 = $4,200 in a year.
Interest = 2.5% of $4,200 = 0.025 × 4,200 = $105.
Total = 4,200 + 105 = $4,305.

Answer: B. $4,305.00