Question

A savings account grows by 3% each year. Sofia places $500 in the account at the beginning of the year. (a) How much does Sofia have at the end of the year once her $500 has been increased by 3%?
(b) How much does Sofia have at the end of the second year based on increasing your answer from part (a) by 3%?
(c) Did the amount of money in Sofia's account grow faster the first year or the second year? Explain how you arrived at your answer.

Answer 1

Find 9% of $500 then multiply by 2