The value of the gift in one year = $1100
The value of the gift in two years = $1200
<h3>Future explanation</h3>
When we save money in a bank, we get interest, so our money increases.
There are two types of flowers, i.e.
if the only interest is the capital
if interest is earned on the interest.
Bank interest is usually calculated in percent for 1 year.
For example, 10% interest, then our savings will get 10% interest if we have saved money in the bank for 1 year
Common formulas that can be used:
- 1. 1-year interest =% interest x capital
- 2. interest for x month = x % interest x capital
= x 1- year interest
The value of the gift in one and two years if you become engaged today
= capital + interest 1 year
= 1000 + 1000 x 10%
= 1000 + 100
= $1100
= capital + interest 2 years
= capital + 1000 x 20%
= 1000 + 200
= $1200
So The future value of the gift is <em>bigger</em> if you get engaged in one year than it is if you get engaged in two years.
<h3>Learn more</h3>
the amount of interest earned
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A savings account
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interest rate affect money earned on a savings account
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Keywords: interest, capital, savings, bank, engaged