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):
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?
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@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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