###### The problem

Carol puts £5000 in a savings account for 2 years.

The first year she earned % interest.

The second year she earned 3.1% interest.

a. Wite a calculation to find the amount of money Carol had at the end of the first year.

b. Multiply your calculation from part a by 1.031 to find the amount in the account after 2 years.

###### The solution

$2.5\%=\frac{102.5}{100}=1.025$ ( 2.5% = 100+2.5 = 102.5)

$3\xb71\%=\frac{103\xb71}{100}=1.031$ ( 3.1%= 100+3.1=103.1)

a.) End of first year = 5000 x 1.025 = £5,125.

b) After 2 years = 5,125 x 1.031 = £ 5283.875 = £5283.88.

Note: Here to calculate percentage, a percentage multiplier method is used. You can just simply find 2.5% in your normal method.