Question

Bryce puts $100.00 into an account to use for schopl expenses. The account earns 3%

interest, compounded annually. How much will be in the account after 7 years?


Help!!!

Answer 1

A = $122.99

Explanation:

A = P + I where

P (principal) = $100.00

I (interest) = $22.99

First, convert R as a percent to r as a decimal

r = R/100

r = 3/100

r = 0.03 rate per year,

Then solve the equation for A

A = P(1 + r/n)nt

A = 100.00(1 + 0.03/1)(1)(7)

A = 100.00(1 + 0.03)(7)

A = $122.99

Therefore:

The total amount accrued on a principal of $100.00 at a rate of 3% per year compounded 1 time per year over 7 years is $122.99.