Question

Steven recently won $1 in the scratch-n-play lotto. His banker,

Answer 1

Answer:

101.00

Step-by-step explanation:

Given:

P=principal=$1

r=rate=1%=0.01

n=number of periods=12

t=time=1

Compound Interest (A)=P(1+r/n)^nt

=$1(1+0.01/12)^12×1

=$1(1+0.00083)^12

=$1(1.00083)^12

=$1(1.0100055)

=$1.0100055

Approximately

101.00