Question

Stanley deposits $1,000 into a savings account that pays 1% interest per year. At the end of the first year, he's earned $10 in interest and there is $1,010 in the account. If the account has simple interest, the 1% interest for year two would be based off ____________. If the account has compounding interest, the 1% interest for year two would be based off ________________. (note: the first choice goes in the first blank, the second choice goes in the second blank).

Answer 1

Stanley deposits $1,000 into a savings account that pays 1% interest per year. At the end of the first year, he's earned $10 in interest and there is $1,010 in the account. If the account has simple interest, the 1% interest for year two would be based off The original deposit ($1 000) . If the account has compounding interest, the 1% interest for year two would be based off the year one account balance ($1 010) .

A savings account is a bank account at a retail bank. commonplace capabilities encompass a restrained number of withdrawals, a loss of cheque and related debit card facilities, restricted switch options and the incapacity to be overdrawn.

Even as there are several special forms of financial savings bills, the 3 most commonplace are the deposit account, the money marketplace account, and the certificate of deposit.

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