Real-Life Math -- Solution
You are an employee benefits coordinator. You are helping an employee
get involved in company stock ownership.
A woman is interested in investing
$1,000 in the company. She earns 5 percent interest per year. At the end of
each year, she decides not to touch any of the money or interest collected.
At the end of 3 years, how much money will she have in the account?
First
year:
$1,000 x 0.05 = $50
$1,000 + $50 = $1,050
At
the end of the first year, she has $1,050.
Second year:
$1,050
x 0.05 = $52.50
$1,050 + $52.50 = $1,102.50
At
the end of the second year, she has $1,102.50.
Third
year:
$1,102.50 x 0.05 = $55.13
$1,102.50 + $55.13 = $1,157.63
At
the end of the third year, she has $1,157.63.
"Math is important," says
employee benefits manager Paul Nerland. "And I think what is especially important
is... to have a good understanding of algebra and equations [and] then to
use it in a spreadsheet [program]."