Question

Anna opened a savings account and deposited $300.00 as principal. The account earns 1%

interest, compounded annually. What is the balance after 2 years?

Answer 1

Times 300 by the 1%, in this case 0.01. Then add that amount to 300. Hope that helps.

Answer 2

$6

Explanation:

First, converting R percent to r a decimal

r = R/100 = 1%/100 = 0.01 per year,

then, solving our equation

I = 300 × 0.01 × 2 = 6

I = $ 6.00

The simple interest accumulated

on a principal of $ 300.00

at a rate of 1% per year

for 2 years is $ 6.00.