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?
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
To begin, we can calculate the amount automatically deposited into Mr. Jones' savings account each week. We know that he grosses $500 per week and 6% of this amount is deposited into his savings account.
To find the weekly deposit amount, we can use the formula: weekly deposit = gross income * deposit percentage.
In this case, the weekly deposit would be calculated as follows:
Weekly deposit = $500 * 6% = $500 * 0.06 = $30.
Next, we need to determine how many weeks are in a year. Since there are 52 weeks in a year, we can multiply the weekly deposit by 52 to find the total deposit for the year.
Total annual deposit = weekly deposit * number of weeks
Total annual deposit = $30 * 52 = $1,560.
Now, we add the 2% interest to the account. To calculate the interest amount, we multiply the total annual deposit by 2%, or 0.02.
Interest amount = total annual deposit * interest percentage
Interest amount = $1,560 * 2% = $1,560 * 0.02 = $31.20.
Finally, we can calculate the total amount in Mr. Jones' savings account at the end of the first year by adding the total annual deposit and the interest amount.
Total amount after interest = total annual deposit + interest amount
Total amount after interest = $1,560 + $31.20 = $1,591.20.
Therefore, Mr. Jones will have $1,591.20 in his savings account at the end of the first year after the interest is added.