Question 1040113: Layla has $30 in a savings account. The interest rate is 5%, compounded annually.
To the nearest cent, how much interest will she earn in 2 years?
Found 3 solutions by Boreal, MathTherapy, Alan3354:
Answer by Boreal(15235)   (Show Source):
Answer by MathTherapy(10552)  (Show Source):
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Layla has $30 in a savings account. The interest rate is 5%, compounded annually.
To the nearest cent, how much interest will she earn in 2 years?
If she takes out the $1.50 interest after the 1st year, then it'll be $1.50 for the 1st year and $1.50 for the 2nd year for a total of $3.00.
If she leaves the interest earned after the 1st year in the account, then the deposit and interest will COMPOUND, and the amount in the account
after 2 years would be $33.075, which makes the interest $3.075 ≈ $3.08
Answer by Alan3354(69443)  (Show Source):
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