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My initial deposit is $100. Every year my account total increases by 5% What is the total percent increase after 5 years?

Respuesta :

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Each year, your account is multiplied by 1.05 (5% increase). Thus, after 5 years, your account would have been multiplied by that value 5 times.

[tex](1.05)^5=1.27628...[/tex]

Thus, the total percent increase would have been 27.6% (rounded to the nearest tenths).