Question

If an amount of $100 in a savings account increases by 10%, then increases by 10% again, is that the same as increasing by 20%? Explain

Answer 1

no 120≠121

Explanation:

no, this can be showed as the following-

10% of $100 is $10 we them add it to get $110

now another 10% increase, this time $110 gives an $11 increase

adding this together we get $121

20% of $100 is $20. we then add this together to get $120

120≠121