Question

Ellen deposits $6,773 into an account earning 1% annually, After seven years what will Ellen's balance have grown to, including interest?

Answer 1

If Ellen deposited 6 773 dollars in her account and did not withdraw any amount for 7 years.
Then she will earn this amount.
=> 1% interest rate per year
=> first year = 6 773 x .01 = 67.73
=> 6773 + 67.73 = 6840.73
=> Second year = 6840.76 * .01 = 68.4073
=> 68.4073 + 6840.76 = 6909.1673
=> Third year = 6909.1673 * .01 = 69.09
=> 6909.1673 + 69.09 = 6978.26
=>4th year = 6978.26 * .01 = 69.78
=> 6978.26 + 69.78 = 7004
=> 5th year = 7004 *.01 = 70.04
=> 7004 + 70.04 = 7074.04
=> 6th year = 7074.04 * .01 = 70.74
=> 70.74 + 7074.04 = 7144.78
=> 7th year = 7144.78 *.01 = 74.45
=> 7144.78 + 74.45 = 7216.23