Question

Angela’s savings account balance was 133.10 after 3 years. What would the balance be after 5 years if the interest rate remains at 10% compounded annually

Answer 1

ponts points points points points

Answer 2

In this question , we have to use compound interest formula, which is

`A= P(1+r)^t`

Here Amount after 3 years = $133.10

Rate of interest = 10%=0.1

TIme =3 years

So we get

`image`

Now we have principal, P = $100,

Rate of interest, r =0.1

Time, t = 5 years

So we will get

`image`

So the balance after 5 years will be $161.05 .