Question

Eloise is investing in a retirement account. She plans on adding an additional $50 at the end of every year and the expected monthly rate of return is 0.25% of the amount invested, calculated at the end of the month. If she starts with $1000 in the account how much money will she have two years after she started the investment?

A. 1111.76
B. 1113.28
C. 1161.76
D. 1163.28

Answer 1

Well, because it is two years, 50x2 is 100 so 1000+100=1100

Then, you would do .25x1000 which is 2.5. That would mean you get 2.5 dollars back every month.

Therefore, your answer is...

C. $1161.76