CPM Homework Help : CC3MN Problem 8-18

Rachel has been given $$1000$ to put into a savings account. She earns $2\%$ simple interest every month. Rachel hopes to buy a car in two years. Help Rachel determine whether she will have enough money if the car will cost $$1500$ .

Hint:

Find the amount of interest Rachel makes. Remember, her interest is added on each month. Consider how many months there are in 2 years.

More Help 1:

Using $I = Prt: 1000 \left(0.02\right) 24$

More Help 2:

In 2 years, Rachel will have gained $480$ dollars of interest.