Lily invests $100 in her bank at a 5% interest rate compounded annually.?

how much will she have in her bank after 5 years?

Lily invests $100 in her bank at a 5% interest rate compounded annually.?
Since you are compounding annually, this means that your interest earns interest too.


After year 1 Lily has 100*1.05=$105


The next year she has 105*1.05= $110.25


Year 3 she has 110.25*1.05=$115.76 (gotta round)


Year 4 is 115.76*1.05=$121.55


and finally at Year 5 121.55*1.05= $127.63





The formula is 100*(1.05^5) or


Base * (1 + int)^numyears
Reply:100$+5%*100*5=


100+25=125



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