Question

Mackenzie has $70 in a savings account. The interest rate is 5%, compounded annually.

To the nearest cent, how much will she have in 1 year?

Answer 1

She will have $73.5 in 1 year

Explanation:

She has $70 and the interest rate is 5% so we need to add 5% to the initial value

x = $70 + $70 * 5%

5% = 5/100

x = $70 + $70 * 5/100

x = $70 + $3.5

x = $73.5

She will have $73.5 in 1 year