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Sara calculates that if she makes a deposit of \$8 each month at an APR of 3.6%, then at the end of two years she’ll have \$194. Lee says that the correct amount is \$215. The Regular Deposits Rule of Thumb should be helpful here. What was the total amount deposited (ignoring interest earned)? \$ What would the balance be if the total amount were deposited at the beginning of the two years? (Assume no additional deposits are made and the money compounds monthly at an APR of 3.6%)

Sara calculates that if she makes a deposit of \$8 each month at an APR of 3.6%, then at the end of two years she’ll have \$194. Lee says that the correct amount is \$215. The Regular Deposits Rule of Thumb should be helpful here.

What was the total amount deposited (ignoring interest earned)?
\$
What would the balance be if the total amount were deposited at the beginning of the two years? (Assume no additional deposits are made and the money compounds monthly at an APR of 3.6%)

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