Ask Question
25 December, 02:53

Christopher deposited $1 in a savings account earning 10% interest, compounded annually.

To the nearest cent, how much interest will he earn in 3 years?

+1
Answers (1)
  1. 25 December, 06:45
    0
    To the nearest cent, Christopher will earn $ 0.13 in 3 years

    Step-by-step explanation:

    Let's recall that the formula of the compounded interest is:

    A = P * (1 + r/n) ^nt, where

    A = Future value

    P = Initial deposit

    r = Interest rate

    n = number of times interest applied per time period

    t = number of time periods elapsed

    Replacing with the values we know:

    A = P * (1 + r/n) ^n

    A = 1 * (1 + 0.1/1) ³°¹

    A = 1 * 1.1³

    A = 1 * 1.1331

    A = 1.13

    Interest = Future value - Initial deposit

    Interest = 1.13 - 1

    Interest = 0.13
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Christopher deposited $1 in a savings account earning 10% interest, compounded annually. To the nearest cent, how much interest will he ...” in 📙 Mathematics if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers