Question

Your parents give you $100 on your 16th birthday. You put it into a savings account with 3% annual interest. How much money will you have if you don't touch it until you turn 18?

please explain a little too..........

Answer 1

I=PRT

x=(100)*(0.03)*(2)

x=6

100+6=106

To find the amount of money you'll have saved after 2 years of not touching it, you have to find the interest first. To find the interest, you multiply the principle (100) by the annual interest rate (3%/0.03) and the rate by time in years (18-16=2)

100*0.03*2=6

Now, you add the interest (6) to the original investment (100) you get 106.

If you don't touch your inputted initial amount until you're 18, you will have 106 dollars.