Question

You deposit $100 in an account earning 4% interest compounded annually. How much will you have in the account in 10 years? Round your answer to the nearest penny

Answer 1

$148.02

Explanation:

In the question

Principal = $100, rate(R) = 4% compounded annually, time(T)= 10 years

we know that the formula for compound interest

A=
`P*_(1+(R)/(100) )^(T)` where A is amount

now putting values in the above formula we get

A=
`100*_(1+(4)/(100) )^(10)`

therefore A= $148.024428

rounding off to the nearest penny we get amount as $148.02 and compound interest will be $48.02