Question: Tony puts $1,000 in a savings account for 1 year. It earns 20% interest. He then takes out half the money to buy a new TV. The next year, the remaining money earns 15% interest. How much is now in the account? Think carefully first, then make a decision:
After one year he earns $200 in interest because 1,000 x .2 = 200. After one year it has $1,200 in the account because 1,000 + 200 = 1,200. He takes out $600 because 1,200 / 2 = 600. After this it has $600 in it because 1,200 - 600 = 600. She earns $90 in interest because 600 x .15 = 90. The account now has $690 because 600 + 90 = 690. So the answer is 690.