Question

Oscar and Carla deposit $1,000.00 into a savings account which earns 10% interest compounded annually. They want to use the money in the account to go on a trip in 2 years. How much will they be able to spend?

Answer 1

They will be able to spend $1210

Explanation:

At the start, there will be $1000 in the savings account that will earn 10% of the current savings(1000) so 1000*(10/100)=$100 so after 1 year in the savings account there will be $1100 the same procces will happen for the next year

2nd year:1100*(10/100)=$110

total=$1100 + $110=$1210