Mr. Jones grosses $800 per week. He has 6% automatically deposited into his savings account. At the end of the year 3% 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?
Assuming he's paid $800 a week --
800 * 0.06 * 52 = $2,496
2496 * 1.03 = 2,570.88
2287389
To find out how much Mr. Jones will have in his savings account at the end of the first year, we need to follow these steps:
1. Calculate the amount Mr. Jones saves per week: Multiply his gross income by the percentage he saves.
Savings per week = $800 * 6% = $800 * 0.06 = $48
2. Multiply the weekly savings by the number of weeks in a year to find the total savings for the year.
Total savings for the year = Savings per week * 52 weeks = $48 * 52 = $2,496
3. Add the 3% interest to the total savings for the year.
Annual interest = Total savings for the year * 3% = $2,496 * 0.03 = $74.88
4. Add the interest to the total savings for the year to get the final amount in Mr. Jones' savings account.
Final amount = Total savings for the year + Annual interest = $2,496 + $74.88= $2,570.88
Therefore, at the end of the first year, Mr. Jones will have $2,570.88 in his savings account after the interest is added.