A scholarship fund awards $2000 to a student. If the fund increases the award by
Practice Questions
Q1
A scholarship fund awards $2000 to a student. If the fund increases the award by 15% each year, how much will the student receive after 2 years? (2022)
$2460
$2300
$2400
$2500
Questions & Step-by-Step Solutions
A scholarship fund awards $2000 to a student. If the fund increases the award by 15% each year, how much will the student receive after 2 years? (2022)
Step 1: Start with the initial scholarship amount, which is $2000.
Step 2: Calculate the increase for the first year. To find 15% of $2000, multiply 2000 by 0.15. This gives you $300.
Step 3: Add the increase from Step 2 to the initial amount. So, $2000 + $300 = $2300. This is the amount after 1 year.
Step 4: Now, calculate the increase for the second year. To find 15% of $2300, multiply 2300 by 0.15. This gives you $345.
Step 5: Add the increase from Step 4 to the amount after 1 year. So, $2300 + $345 = $2645. This is the amount after 2 years.
Percentage Increase – Understanding how to calculate a percentage increase on a given amount over multiple periods.
Compound Interest – Applying the concept of compound growth where the increase is calculated on the new total each year.
