Steven recently won 1 in the scratch-n-play lotto how much


Steven recently won $1 in the scratch-n-play lotto. His banker, Marianne, promises to pay him 1% per month if he will invest his money in her bank for 12.5 years.

Part A: How much money will Steven have earned in interest after one year? Note that there are 12 compounding periods in one year. Write your answer as a percent and round to two decimals (i.e. 0.1234321 should be written as 12.34).

Part B: How much money will Steven have in the bank after 12.5 years? Round your answer to two decimals but don't include the dollar sign.

Part C: Given that Steven earns 1% per month, how many years (not months) would Steven have to wait until he had $600 in the bank account? Round your answer to two decimals.

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