Question

Basheera's goal is to increase her savings by 30% in one year. She currently has

$210 in savings. If she reaches her goal, what is the total amount of money she
would have in her savings next year? After two years?

Answer 1

After increasing her savings by 30% in one year, Basheera would have $273. If she increases her savings by another 30% in the second year, she will have $354.90.

Step-by-step explanation:

To calculate the total amount of money Basheera would have in her savings after reaching her goal of increasing her savings by 30% in one year, we start with the initial amount of $210. The increased amount after one year is calculated by multiplying the original amount by 1 plus the percentage increase in decimal form.

Year 1 calculation:

Increased amount = Original amount × (1 + Percentage increase)

Increased amount = $210 × (1 + 0.30)

Increased amount = $210 × 1.30

Increased amount = $273

Thus, after one year, Basheera would have $273 in her savings.

For the second year, we assume she increases her savings by another 30% from the amount she has at the end of the first year.

Year 2 calculation:

Increased amount = Year 1 amount × (1 + Percentage increase)

Increased amount = $273 × (1 + 0.30)

Increased amount = $273 × 1.30

Increased amount = $354.90

So, after two years, Basheera would have $354.90 in her savings if she continues to increase her savings by 30% annually.