Question

Michelle's father deposited $1,000 into a savings account when she was born. The annual interest rate is

Answer 1

Answer:

0. $1,000  1. $1,045  2. $1,092.03  3. $1,141.17  4. $1,192.52. 5. $1,246.18     6. $1,302.26  7. $1,360.86  8. $1,422.10

Step-by-step explanation:

First you start with the beginning balance of $1,000 dollars, then you multiply that by 1.045 to get $1,045 dollars after one year. Then you multiply $1,045 by 1.045 to get $1,092.025 (monetarily correct, it would be $1,092.03) after the second year. Then you multiply $1,092.025 (keeping it un-rounded for precision) by 1.045 to get $1,141.16612 after the third year. Then you multiply $1141.16612 by 1.045 to get $1,192.5186 after the fourth year. Multiply $1,192.5186 by 1.045 to get $1,246.18193 after the fifth year. Multiply $1,246.18193 by 1.045 to get $1,302.26012 after the sixth year. Multiply $1,302.26012 by 1.045 to get $1,360.86182 after the seventh year. Multiply $1,360.86182 by 1.045 to get $1,422.10061 after the eighth year. Basically, Michelle is going to be a trust fund baby by the time she's twenty and she won't have to worry about college if she works hard and does well in high school.