Basic College Mathematics (9th Edition)

by Lial, Margaret L.; Salzman, Stanley A.; Hestwood, Diana L.

Published by Pearson

ISBN 10: 0321825535

ISBN 13: 978-0-32182-553-7

Chapter 6 - Percent - 6.8 Compound Interest - 6.8 Exercises - Page 455: 10

Answer

1.05; 1.05

Work Step by Step

Since we use an interest rate of 5%, we multiply by 1.05. Since the time period is two years, we multiply by 1.05 twice. Therefore: $\$3000*1.05*1.05=\$3307.50$

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