Question

Eloise is investing in a retirement account. She plans on adding an additional $50 at the end of every year and the expected rate of return is 3% of the amount invested, calculated at the end of the month. If she starts with $1000 in the account how much money will she have one year after she started the investment?

Answer 1

10% of 1000 is 100.  So 3% must be 30.  $1000 + 30 = 1030.  However, she adds the $50 in the account as well.  So 1030 + 50 = $1080