Kendall puts 1,055.00 into an account to use for school expenses. The account earns 1% interest, compounded annually. How much will be in the account after 5 years?

Solution

Kendall puts 1, 055.00 into an account to use for school expenses. The account earns 1% interest, compounded annually. How much will be in the account after 5 years?

Solution

Amount : 1108.82

Solution steps

Translate the problem into an equation:

A = 1055 (1 + \frac{0.01}{1})^{1 \cdot 5}

1055 (1 + \frac{0.01}{1})^{1 \cdot 5} = 1108.81560 \dots

Round to the nearest hundredth:

1108.82

Amount : 1108.82

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