Question

elaine opened a saving account with a deposit of 1000. The interest on her account is compounded each year at a rate of 2%. Elaine whill not make any additional deposits to or withdrawls from her account. What will be the balance in Elaine's account at the end of 3 years. Round your answer to the nearest whole dollar

Answer 1

1061

Explanation:

Answer 2

$1,061

Explanation:

2% of 1000 is 20.

If 2% is compounded yearly, then

year one- $1,020

year two- $1,040.40

year three- $1,061.21

Rounded to the nearest whole dollar, Elaine would have $1,061 in her savings account after three years.