Calculating Account Value Growth

The video tutorial explains how the amount of money in a savings account increases by 5% each year. After 3 years, the account is worth $110, and the tutorial demonstrates how to calculate the value after 4 years by multiplying the current amount by 1.05, which accounts for the 5% increase. The tutorial breaks down the concept of percentage increase and applies it to find the future value of the account.

What is the annual percentage increase in the savings account?

• 15%

• 3%

• 5%

• 10%

If the account is worth $110 after 3 years, what is the initial amount before any interest?

• $115

• $110

• $105

• $100

What is the multiplier used to calculate the account value after a 5% increase?

• 1.5

• 1.05

• 1.005

• 0.05

Why do we multiply by 1.05 instead of just 0.05?

• To calculate a 10% increase

• To include the original amount and the increase

• To only calculate the increase

• To decrease the amount

What is the final amount in the account after 4 years?

• $115.50

• $110

• $120

• $105

How do you calculate the account value after 4 years if it was $110 after 3 years?

• Subtract $5 from $110

• Multiply $110 by 0.05

• Add $5 to $110

• Multiply $110 by 1.05