Mr. Jones grosses $500 per week. He has 6% automatically deposited into his savings account. At the end of the year 2% is added to the account. How much will he have in his savings account at the end of the first year after the interest is added?

Answer 1

6% of $500 = 500*6/100=$30 per week.
At the end of the year, he would have
52*30=$1560 in the account.
If 2% interest is added,
interest = $1560*(2/100)=$31.20
Total balance in the account
= $1560 + $31.20 = $1591.20