A bank offers a 5% increase on deposits. If you deposit $1,000, how much will yo

₹0.0

Question: A bank offers a 5% increase on deposits. If you deposit $1,000, how much will you have after one year?

Options:

Correct Answer: $1,050

Solution:

Amount after one year = Deposit + (5% of Deposit) = 1000 + (0.05 * 1000) = 1000 + 50 = $1,050.

A bank offers a 5% increase on deposits. If you deposit $1,000, how much will you have after one year?

A bank offers a 5% increase on deposits. If you deposit $1,000, how much will you have after one year?

Step 1: Identify the initial deposit amount. In this case, it is $1,000.
Step 2: Determine the percentage increase offered by the bank. Here, it is 5%.
Step 3: Convert the percentage to a decimal for calculation. 5% as a decimal is 0.05.
Step 4: Calculate the amount of increase by multiplying the deposit by the decimal. So, 0.05 * 1000 = $50.
Step 5: Add the increase to the initial deposit to find the total amount after one year. $1,000 + $50 = $1,050.

Percentage Increase – Understanding how to calculate a percentage increase on a given amount.
Basic Arithmetic – Performing addition and multiplication to find the final amount after applying the percentage increase.