Question

Ellen deposits $6,773 into an account earning 1% annually. After seven years what will Ellen's balance have grown to, including interest?

Answer 1

Each accounts have different amounts of interests, so for this i'm going to use 0.5%

First of all there are quick and easy ways to solve this, here is the most time consuming (explained way to do this):

6773 * 101% = Account balance without interest  (100% + 1% = 101%)
6773 * 101% = 6840.73 (first year)
6840.73 * 101% = 6909.1373 (second year)
6909.1373 * 101% = 6978.228673 (third year)
6978.228673 * 101% = 7048.01095973 (fourth year)
7048.01095973 * 101% = 7118.49106933 (fifth year)
7118.49106933 * 101% = 7189.67598002 (sixth year)
7189.67598002 * 101% = 7261.57273982 (seventh year)

So the balance without interest by the 7th year is : 7261.57 (2 DP)
Subtracting the interest of 0.5% (assumption) :
7261.57 * 99.50% = 7225.26215 or 7225.26 (2 DP)

Note this way is extremely time consuming, I was just showing the process. I may not be right though, if my logic seems right, use this answer.