Question

You put $600 in an account at 5%. What is that balance at the end of two years?

Answer 1

Answer:

$661.5

Step-by-step explanation:

The formula for this question is FV = PV (1 + r)^n so you set it up as 600(1+.05)^2 and you get $661.50 because you  are paying for interest over two years which is n, FV is the future value which is 661.50, PV is previous value which is 600, and r is he interest rate which is .05.

Answer 2

Answer:

$660

Step-by-step explanation:

1: Change 5% to a decimal. (0.05)

2: Multiply 600 X 0.05 X 2(years)

3: Add 60 and 600

4: $660