Question

One hundred dollars is invested at 7.2% interest compounded annually. Determine how much the investment is worth after 1 year.

Answer 1

what's 7.2% of a hundred then?

Answer 2

72?

Answer 3

nu-uh
too good to be true, if after a year, 100 dollars becomes 172. that's unthinkable :D

Answer 4

okay..im lost then

Answer 5

you need a review of what % means?

Answer 6

percent

Answer 7

yeah, so what does 7.2% mean?

Answer 8

7.2 percent... so how do i set up the problem?

Answer 9

% is the same as multiplying by 0.01
XD

Answer 10

okay.. so i multiply .072 by 100?

Answer 11

mhmm... and you get? :)

Answer 12

i got 7.2 as my answer

Answer 13

that's 7.2% of 100 which is what will be added to 100 after a year :)

Answer 14

ok thank you so very much :)