Question

Philip deposited $50 in a savings account earning 10% interest, compounded annually.

To the nearest cent, how much will he have in 3 years?

Answer 1

He will have $66.55 in 3 years.

Explanation:

Given that,

Principal, P = $50

Rate of interest, R = 10%

We need to find the amount earned by him in 3 years. We know that, the final amount is given by :

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

Put all the values,

`A=50(1+(10)/(100))^3\\\\=50* ((11)/(10))^3\\\\=\$66.55`

So, he will have $66.55 in 3 years.