A savings account grows by 3% each year. Sofia places $500 in the account at the beginning of the year. (a) How much does Sofia have at the end of the year once her $500 has been increased by 3%?
(b) How much does Sofia have at the end of the second year based on increasing your answer from part (a) by 3%?
(c) Did the amount of money in Sofia's account grow faster the first year or the second year? Explain how you arrived at your answer.

c) The amount grew faster in the second year. Because after each year, the amount she has increase, and then the 3% will be applied over a higher amount than before, generating more profit than the previous year.

Step-by-step explanation:

a)

After one year, the amount increased is 3% of the inicial value, so it is 0.03 * 500 = $15

So Sofia has 500 + 15 = $515 at the end of the year.

b)

After the second year, the amount will increase by 3%, but now the amount is 515, so we have 0.03 * 515 = $15.45

So Sofia has 515 + 15.45 = 530.45 at the end of the second year.

c)

The amount grew faster in the second year. Because after each year, the amount she has increase, and then the 3% will be applied over a higher amount than before, generating more profit than the previous year.

ewomazinoade ewomazinoade · Answer 2 · 2022-01-18T11:41:56+01:00

The amount of money after the first year is $515.

The amount of money after the second year is $530.45

Sofia's account grew faster in the second year. In the first year, the account increased by $15 and the account increased by $15.45 in the second year.

Value of the account after a year

The formula that can be used to determine how much Sofia would have at the end of the year = amount deposited + (amount deposited x time x interest rate)

500 + (500 x 0.03 x 1) = $515

Value of the account after the second year

$515 + (515 x 0.03 x 1) = $530.45

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