Maths-
SAT
Easy
Question
Markela opens a bank account that earns interest at a rate of 2% compounded annually. She puts $200 in the account when she opens it and does not make any more deposits into or withdrawals from the account for 2 years. If the amount of money in the account after 2 years is given by the expression 200(1.02)2, which of the following expressions gives the amount of money in the account after 1 year?
- 100(1.02)
- 200(1.02)
- 100(1.02)2
- 200(1.01)2
The correct answer is: 200(1.02)
The expression for the amount of money in the account after 1 year is
200 (1.02)1 = 200 (1.02).
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