Question

What is the compound interest in a three-year, $100,000 loan at a 10 percent annual interest rate

A) 10.00
B) 21.00
C) 33.10
D) 46.41

Answer 1

C) 33.10

Explanation:

Answer 2

Compound interest = $3310

Explanation:

Formula for calculating compound interest

A = P[1 + R/100]^N

A - Amount

P - Principle amount

R - Rate of interest

N - Number of years

To find compound interest

Here

P - $100,000

R - 10%

N - 3 years

A = P[1 + R/100]^N

A = 100000[1 + 10/100]^3

A = 100000[110/100]^3

A = 100000[1.10]^3 = 133100

Compound interest CI = A - P = 133100 - 100000 = 33100

Option C) have some mistake, 33.10 instead of 33100