Question

PLEASE ANSWER ASAP THANK YOU!!!

How much money will be in a bank account after 3 years if $9 is deposited at an interest rate of 5% compounded annually? Round to the nearest dollar.

Answer 1

A = $10.42

Explanation:

The appropriate formula is the "compound amount" formula given by

A = P(1 + r)^t,

where P is the initial amount, r is the annual interest rate as a decimal fraction, and t is the number of years elapsed.

Here:

A = $9(1 + 0.05)^3, or

A = $9(1.05)^3, or

A = $10.42

Answer 2

$10.42

Explanation:

Compound interest formula: A=p(1+r/n)^nt

9=p, r=0.05, n=1, and t=3

A=9(1+0.05)^3

A=9(1.05)^3

Plug this into calculator and you get $10.42