Question

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

A.) 259.37
B.) 283.94
C.) 110.46

Answer 1

B. 283.94 is the answer 

Answer 2

B) 283.94

Explanation:

Here we have to use the compound interest formula.

A =
`P(1 + (r)/(100) )^n`

Where A is the amount, P is the principle, r is the rate and n is the number of years.

Given: P = $100, r = 11, n = 10

Plug in the given values in the above formula, we get

A = 100(1 + 11/100)^10

A = 100(1 + 0.11)^10

A = 100(1.11)^10

A = $283.94

The answer is B) 283.94