Question

At the beginning of the year 2000, Bob put $100 in a savings account. The bank pays Bob 5% interest on his total savings at the end of each year, including all interest added to the mail. Assume the interest rate continues and Bob does not deposit any additional money in the account. How much will he have in his savings account, to the nearest cent, after five interest payments

Answer 1

$127.63

Explanation:

100 × (1.05)^{5}

100 being the starting value 1.05 being the percent its incressing by. (its incressing by 5% but you add that to 100% percent to make sure your number is going up not down and the 5th power is amount of times the intrest is payed basically just multiplying the equation