Question

Felix has $100 in an account that earns 5% interest compounded annually.

Answer 1

Answer:

$110.49

Step-by-step explanation:

100(1+0.05/12)^12(2)

The $100 increases by 5%, or 1.05, every year, and to find the interest after two years, we use the formula above. His value after the first year raises to $105, and then again by 5%, which is 110.49.