Question

Travis deposited $100 into a savings account that earns 6% compounded monthly. He plans on keeping the money in the account for 6 months and depositing an additional $100 each month. at the end of 6 months, how much interest will Travis have earned?

Answer 1

$100x6%=$6... he will get $6 from every $100, per month.
The interest goes up 6% every month, and he also adds $100 more each month.
Month 1: $100 ->$6
Month 2: 200 -> $12
Month 3: $300 -> $18
Month 4: $400 -> $24
Month 5: -> $30
Month 6 -> $36
So, at the end of 6 months, he will have earned $36 of interest.

Answer 2

6% is usually a yearly amount, compounded monthly is .5% each month

Answer 3

0: 100
1: 100 + 100(.005)
2: 100 + 100(.005) + 100(.005)(.005)
3: 100 + 100(.005) + 100^2 + 100(.005)^3
...
6: 100 + 100(.005) + 100^2 + 100(.005)^3 + ... + 100(.005)^6

but this depends on if the deposit is at the beginning or end of the month. an ordinary annuity or an annuity due