Question

Olivia is putting money into a new savings account.

Each month they deposit £240.
After 8 months they spend 10% of the money in the account.
Work out how much Olivia spent.
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I

Answer 1

£192

Explanation:

All values are in £.

This is a new account, so the total in the account at time 0 (now) is £0.

The account builds at a constant rate of £240/month.

The total added after 8 months is: (8 months)*(£240/month) = £1920.

We'll assume no interest is paid over that period (not a bad assumption with some banks)

If Olivia spent 10% of the accumulated amount, they spent (0.10*£1920) = £192