Question

Keith has $20 in a savings account that earns 10% interest, compounded annually.

To the nearest cent, how much interest will he earn in 3 years?
Use the formula B = p(1 + r)t, where B is the balance (final amount), p is the principal (starting amount), r is the interest rate expressed as a decimal, and t is the time in years.

Answer 1

A = P(1 + r)t

Explanation:

account balance, to the nearest cent, after: Year 1? Year 2? Year 3? Year 4? ... -To calculate compound interest we use the formula below where A = total balance after t years, P = principal amount (amount borrowed or invested), r = interest ... annually. a) How much money will Jack have after 1 year? b) How much money ...

Answer 2

$6.62 interest

Explanation:

B = p(1 + r)^t

= 20(1 + 0.10)^3

= 20 * (1.10)^3

= $26.62