SOLUTION: Rock puts $1000 in the bank for two years at 10% interest compounded annually. At the end of the two years, what will be her balance?

Question 1195149: Rock puts $1000 in the bank for two years at 10% interest compounded annually. At the end of the two years, what will be her balance?
Found 2 solutions by MathLover1, ikleyn:
Answer by MathLover1(20850)   (Show Source): You can put this solution on YOUR website!

given:

years
%

First, convert rate as a percent to as a decimal

rate per year,
Then solve the equation for

after two years, her balance will be

Answer by ikleyn(52788)   (Show Source): You can put this solution on YOUR website!
.
Rock puts $1000 in the bank for two years at 10% interest compounded annually.
At the end of the two years, what will be her balance?
~~~~~~~~~~~~~~~~~

            @MathLover1 read, interpreted and solved the problem incorrectly,
            giving wrong answer.

As written, the text means that the interest is 10% annually, compounded annually. So, after one year, the amount at the account is 1.1*1000 = 1100 dollars, after fisrt compounding. After two years, the amount at the account is = 1.21*1000 = 1210 dollars, after second compounding. ANSWER. After two years, the balance will be 1210 dollars.

Solved.

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To see many other similar (and different) solved problems on compounded interest accounts, look into the lesson
    - Compounded interest percentage problems
in this site.

Learn the subject from there.

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