Question

Felix has $50 in a savings account that earns 5% interest, compounded annually. To the nearest cent, how much interest will he earn in 2 years?

Answer 1

$55.13

Explanation:

50 * 1.05 = 52.5

We do this step twice because the interest is for 2 years.

52.5 * 1.05 = 55.125

This rounds up to 55.13, your final answer!