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The Bank of Springfield's Super High Yield savings account compounds annually at a rate of one percent. If Lisa invests 1000 dollars in one of these accounts, then how much interest will she earn after five years? (Give your answer to the nearest dollar.)

 Jun 4, 2020
 #1
avatar+188 
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1 percent each year... it's not 1050.

 

First year 1010 (duh)

 

Second year is trickier. It lops off 1 percent each year so we multiply it by 0.01 to get 1020.1

 

You keep going and round it off at the end and get 1051.

 

(In case you wanted the other ones, they are listed below)

 

Year 3: 1030.301

 

Year 4: 1040.60401

 

Yay!

 Jun 4, 2020
 #2
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OOF I forgot to subtract by 1000, so i got it wrong. Dang it. Thanks for your help tho!

AnimalMaster  Jun 4, 2020
 #3
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*sad trombone music*

Varxaax  Jun 4, 2020
 #4
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1000(1+.01)^5 - 1000=......

 Jun 4, 2020

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