Question

A. If the bank provides an annual percentage yield of 3.2%, what will be the balance when lucy turns 1? turns 2? turns 3?

Answer 1

1 year=3.2%

2 year=6.4%

3 year=9.6%

Explanation:

Since the% increases every year

So for the first year=

3.2% of 1

3.2%×1

3.2%

For second year

3.2% ×2

6.4%

For the third year

3.2% × 3

9.6%