Rachel’s bank pays 5.5% a year interest on the previous year's balance. For the first year, Rachel had $5,000.00 on deposit at the bank. If each year Rachel does not withdraw any money, finish filling in the following to see how much money Ray will end up with after 2 years. Multiply each year's beginning balance by the interest rate and then calculate the new total balance (Total X 5.5% or .055). Round each calculation to the nearest penny.
Beginning Balance $5,000.00
Interest earned in Year 1 $ _______________ TOTAL $ _______________
Interest earned in Year 2 $ _______________ TOTAL $ ________________
