Question

Carolina has $5,000 saved up from working at different jobs. She puts her money in a savings account that pays 4 percent a year in interest. How much will she be in her account at the end of the first year at the end of the second year?

Answer 1

The first year would be $5200.
Find 4℅ of $5000 and add it to the 5000
Next year $5208.
same 4% of 5200 now then add it to 5200

OR
get the formula for compound interest work it out.