Question

Eva deposited $50 in an account earning 10% interest compound annually to the nearest cent how much interest will she earn in 2 years

Answer 1

For 10% interest, you can multiply the original number by 1.1.

$50 x 1.1 = $55 after one year

$55 x 1.1 = $60.50 after two years

$60.50 - $50 = $10.50

In 2 years, Eva will earn $10.50 in interest.