Savings account?

sarah put 1,000 dollars in my bank account at an interest rate of 5%. if the interest on her bank account is compounded annually, approximately how much will she have in her savings account after 3years??

i dont get it..

Savings account?annual credit report

Compounding interest means that the account pays interest on any interest that you earn (which is pretty much how all savings accounts work).

So at the end of year one, you would have $1000 * 1.05 = $1,050

year two: $1,050 *1.05 = $1,102.50

year three: $1,102.5 *1.05 = 1,157.63.

That%26#039;s your answer: $1.157.63

Savings account?

loan

start 1yr 2yr 3yr

1000 1050 1102.5 1157.625

In the first year, the interest applies just to the original principal amount of $1000, but in later years the interest also builds on the accrued interest.|||1000x.05=$50. so end of first year she has 1,050.

1050x.05=$52.50. so end of 2nd year she has 1102.50

1102.50x.05=$55.13. so end of 3rd year she has $1,157.63 in the account.|||huh, didnt you say she put money in YOUR bank, so y would she get anything out of HER bank.....

but the answer is $1157.63 3 years of compounded interest on $1000