Question

A bank pays 3 percent interest, compounded annually. If you put $1,500 in the bank, how much do you have in the bank after two years?

Answer 1

$1591.35

Step-by-step explanation:

in the first year,

$1,500 × (100% + 3%)

= $1,500 × 103%

= $1,545

in the second year,

$1,545 × (100% + 3%)

= $1,545 × 103%

= $1591.35

do comment if you need any clarification. i hope this helps! :D