Respuesta :
Answer:
1.21x
Step-by-step explanation:
we can write 100% as 1
then 10% is 0.1
then 1.1x = is first
1.1*1.1x = 1.21x or 121% of x
The savings of $x grows 10% each year after 2 year it will become 1.21x .
What is compound interest?
Compound interest is an interest accumulated on the principal and interest together over a given time period. The interest accumulated on a principal over a period of time is also accounted under the principal.
The formula of Compound interest :
[tex]A= P(1+\frac{r}{100} )^{t}[/tex]
where,
A = Final amount
P = initial Principal
t = Time in years
r = rate of interest per annum
According to the question
Principal = $x
Rate of interest per annum = 10%
Time in years = t
By using formula of Compound interest :
[tex]A= P(1+\frac{r}{100} )^{t}[/tex]
Now ,
Substituting the values in the formula
[tex]A= x(1+\frac{10}{100} )^{2}[/tex]
[tex]A= x(1.1} )^{2}[/tex]
[tex]A= 1.21x[/tex]
Hence, the savings of $x grows 10% each year after 2 year it will become 1.21x .
To know more about Compound interest here:
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