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Afina-wow [57]
3 years ago
14

Joni put $200 in an interest-bearing account with an annual compound interest rate of 5%. Joni determined that after 3 years, sh

e will have a total balance of $230. Her work is shown below.
Step 1: P = 200, r = 5, t = 3

Step 2: I = 200 ∙ 0.05 ∙ 3

Step 3: I = 30

Step 4: 30 + 200 = 230
Mathematics
1 answer:
sergejj [24]3 years ago
7 0

Answer:

Joni is not correct because she used the simple interest rate formula, not the compound interest rate formula. She will have $231.53.

Step-by-step explanation:

I already took the test

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