Question

What is the balance on a deposit of $1,150 that earns 9% interest compounded annually for 2 years

Answer 1

Step One: Calculate interest.


`1150*0.09=103.5`

Step Two: Calculate the amount at the end of the first year.


`1150+103.5=1253.5`

Step Three: Calculate the amount at the end of the second year. This will be your final answer.


`1253.5+103.5=1357`

$1357 balance