Answer:
if you were to place your money in a savings account that is an annual rate of 5.5% interest, compound interest would be used to model this option.
Step-by-step explanation:
And if you want to calculate compound interest then these are the steps:
Divide the value of an investment at the conclusion of a compounding period by its value at the start of that period.
Raise the result to an exponent of one divided by the number of years.
Subtract one from the result.
Hope this helps you!
