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The image shows a table detailing Shannon’s savings account over 5 years, with information about deposits, interest earned, and total balances. The question asks why the interest earned increased each year.

### Analysis:

1. **Shannon's Monthly Deposits**: Shannon deposited $240 per month, which amounts to **$2,880 annually** ($240 × 12 months).

2. **Interest Calculation**: The interest is **2%** of the account's total balance at the end of the year. Interest increases each year because the interest is based on the increasing total balance.

3. **Why the Interest Grows**:
   - Each year, Shannon's balance increases due to both the yearly deposit and the previous year’s interest.
   - The interest is then calculated on this larger balance, so each year the amount of interest grows as the balance grows.

### Correct Answer:
The correct explanation is:
- **D. Interest accrued on the account’s total balance, which increased each year.**

This option reflects the fact that the growing total balance, which includes previous interest and deposits, results in a higher interest amount each subsequent year.

Would you like more details on the interest calculations or the savings growth process?

### Follow-up Questions:
1. How is compound interest different from the simple interest in this scenario?
2. If Shannon continued for 10 years, how would the total balance change?
3. How would the savings differ with a higher interest rate (e.g., 3%)?
4. What happens to the balance if Shannon stops depositing after 5 years but keeps earning interest?
5. Can you determine how much of the final balance is due to interest alone?

### Tip:
Interest earned on an account grows faster over time due to the compounding effect of earning interest on both the principal and the accumulated interest.

Why did the dollar amount of interest earned on the account increase each year?

This problem explains why the interest earned on Shannon's savings account increases each year. Learn about the effects of compounding interest and how the total balance growth leads to higher interest amounts over time. Suitable for high school students in Grades 9-11.

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