Answer to Question #93736 in Financial Math for sarah

Question

Jessica spends 1/4 of er income from odd jobs on books, 1/3 on transport and 1/6 on clothing, The rest she saves.
a) If she saves 8 per month, how much is her income each month?
b) How much does she save in a year at a rate of $8 per month?
c) She deposits one year's savings into an account that pays 8.5% interest for five years.
i: how much interest would she earn?
ii: How much would she have altogether in the end?

Answer 1

a)she saves 1 - (1/4 + 1/3 + 1/6) = 3/12 = 1/4;

$8 * 4 = $32;

b)$8 * 12 = $96;

c)

I) $96 * 5 * 8.5% = $40.8;

II) $96 * 5 * 8.5% = $40.8;

$96 + $40.8= $136.8