If you save $300 today in a bank account that earns 2% interest, how much will you have in 1 year?

Assume annual compounding. Enter your answer rounded to two decimal places and do not include the dollar sign. 

We can solve this using the formula for compound interest: 

\[
A = P \times \left(1 + \frac{r}{n}\right)^{n \times t}
\]

Where:  
- $A$ is the final amount  
- $P$ is the principal (initial amount) = 300  
- $r$ is the annual interest rate = 2% = 0.02  
- $n$ is the number of times the interest is compounded per year = 1 (since it's annual)  
- $t$ is the number of years = 1  

Now, substitute the values:

\[
A = 300 \times \left(1 + \frac{0.02}{1}\right)^{1 \times 1}
\]

\[
A = 300 \times (1.02) = 306.00
\]

So, the final amount after 1 year will be **306.00**.

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Do you have any questions or need further clarification?

Here are five related questions:
1. What would the amount be if the interest rate was 5% instead?
2. How much interest would you earn if you left the money for 2 years?
3. What would the final amount be if the bank compounded interest monthly?
4. How much more would you earn with 3% interest instead of 2%?
5. What is the difference between simple and compound interest?

**Tip:** To grow savings faster, look for accounts with higher interest rates or frequent compounding intervals.

If you save $300 today in a bank account that earns 2% interest, how much will you have in 1 year?

Learn how to calculate compound interest on a $300 deposit at a 2% annual rate over 1 year using the compound interest formula. This solution demonstrates key concepts in algebra and finance, including calculating final amounts using interest rates. Perfect for Grades 9-12 students.

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