Question

A bank account has a monthly interest rate of 1% and initial balance of $1,000. Any earned interest is added to the account and no other deposits or withdrawals are made.

What is the account balance after 3 months. Round to the nearest dollar.

Answer 1

Answer: 1030.301 rounded is $1,030

Explanation:

1000(1+.01)^3=1030.301

You multiply your initial amount by 1 and add your percent after you convert it to a decimal by moving your point two paces to the left. If you're withdrawing, you subtract your decimal. Everything is them raised to the power of 3. You then can multiply it on paper, my teacher lets us use calculators though to ensure we don't get an incorrect answer.