Question

You deposit $200 in an account earning 3% interest compounded

Answer 1

Answer:

$268.78

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, change 3% into its decimal form:

3% -> $\frac{3}{100}$ -> 0.03

Now, plug in the values:

$A=200(1+\frac{0.03}{1})^{1(10)}$

$A=268.78$

After 10 years, you will have $268.78