Question

Maria has 90$ in a saving account.The interest rate rise a 5% compounded annually.to the nearest cent, how much will he have in 3 years

Answer 1

Answer:

$104.19

Step-by-step explanation:

We will use the compound interest formula to solve this:

$A=P(1+\frac{r}{n} )^{nt}$

P = initial balance

r = interest rate (decimal)

n = number of times compounded annually

t = time

First, lets change 5% into a decimal:

5% -> $\frac{5}{100}$ -> 0.05

Now, plug the values into the equation:

$A=90(1+\frac{0.05}{1})^{1(3)}$

$A=104.19$

After 3 years, Maria will have $104.19