Question

Mary invests $450 in a high-interest savings account. In the first year, the value of her savings increases by 6%. In the

second year, there is a further increase of 6%. What is the total value of her investment after two years?

Answer 1

Explanation:

PV = 450 dollars

I = 6%

N = 2

FV = 450 ( 1 + 0.6 ) ^2

1.1236 x 450

505.62

Answer = 505.62