SOLUTION: Find the compound amount on a deposit of $100 at 5% for 5 years by multiplying the original amount deposited by 100% plus the compound rate.
Algebra ->
Customizable Word Problem Solvers
-> Misc
-> SOLUTION: Find the compound amount on a deposit of $100 at 5% for 5 years by multiplying the original amount deposited by 100% plus the compound rate.
Log On
Question 1141065: Find the compound amount on a deposit of $100 at 5% for 5 years by multiplying the original amount deposited by 100% plus the compound rate. Answer by greenestamps(13206) (Show Source):
100% plus the 5% interest rate is 105%, or 1.05; the growth factor each year is 1.05. In 5 years, the original amount gets multiplied by the growth factor 5 times.
