Question

How much would Vincent have in his account after three years if he started with $100 and earns 5 percent, compounding annually?

Answer 1

Answer:

D. $115.76

Step-by-step explanation:

We will use compound interest formula to solve our given problem.

$A=P(1+\frac{r}{n})^{nT}$, where,

A= The final amount after T years.

P= Principal amount.

r= Interest rate in decimal form.

n= Period of compounding.

T= Time in years.

Let us convert our given interest rate in decimal form.

$5\text{ percent}=\frac{5}{100}=0.05$

Now let us substitute our given values in compound interest formula.

$A=100*(1+\frac{0.05}{1})^{1*3}$

$A=100*(1+0.05)^{3}$

$A=100*(1.05)^{3}$

$A=100*1.157625$

$A=115.7625\approx 115.76$

Therefore, Vincent will have $115.76 in his account after 3 years and option D is the correct choice.

Answer 2

Answer:

15.16

Step-by-step explanation:

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