Question

John invests $10,000 for three years at 10% compounded annually. How much will John have after the three years?

Answer 1

12100
I think I've done this before and that's the answer

Answer 2

The formula to find the amount is

A = P(1+r)^n

P is the principal

r = rate of interest

n is the number of years

Here P = $10,000

r= 10% = 0.10

n = 3 years

Substituting the values in the formula we get

A= 10,000 (1 + 0.10)^3

A= 10,000(1.10)^3

A= $13,310

The compound interest earned during the three years = 13,310 - 10,000 = $3,310

John will have $13,310 after 3 years.