Question

What would be the value of $100 after 10 years if you earn 11 percent interest per year?

Answer 1

If the interest is simple interest, then the value is

       100 [ 1 + (10 x 0.11) ]  =  100 (1 + 1.1)  =  100 x 2.1  =  $210 .

If the interest is compound interest, and is compounded annually,
then the value is

       100 (1 + 0.11)¹⁰  =  100 (2.8394)  =  $283.94 .


If the interest is compound interest, and is compounded monthly,
then the value is

       100 (1 + 0.11/12)¹²⁰  =  100 (2.9891)  =  $298.91 .


That's why compound interest is better than simple interest. 

Answer 2

Answer:

$\left[\begin{array}{ccc}A&259.37\\B&283.94&Correct\\C&110.46\end{array}\right]$

Step-by-step explanation:

$\left[\begin{array}{ccc}100(1+\frac{0.11}{12})^{10} \end{array}\right] = \left[\begin{array}{ccc}100(2.8394)\end{array}\right] = \left[\begin{array}{ccc}283.94\end{array}\right]$