Question

Darnel has $9 in a savings account. The interest rate is 10%, compounded annually.

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

Answer 1

9514 1404 393

Answer:

$2.98

Explanation:

The amount of interest earned is ...

I = P((1 +r)^t -1)

I = $9(1.1^3 -1) ≈ $2.98

Daniel will earn about $2.98 in interest in 3 years.