Question

My initial deposit is $100. Every year my account total increases by 5% What is the total percent increase after 5 years?

Answer 1

Each year, your account is multiplied by 1.05 (5% increase). Thus, after 5 years, your account would have been multiplied by that value 5 times.

`(1.05)^5=1.27628...`

Thus, the total percent increase would have been 27.6% (rounded to the nearest tenths).