Question

You put 100 into a saving account with an annual interest rate of 3%. How much money would be in the account if you left it alone for 8 years

Answer 1

9514 1404 393

Answer:

124

Explanation:

In the absence of any information about interest compounding, we'll assume that simple interest applies. The balance is ...

A = P(1 +rt) . . . . . principal P, annual rate r, for t years

A = 100(1 +0.03×8) = 100×1.24

A = 124

124 would be in the account after 8 years.

_____

Additional comment

If interest is compounded annually, the amount would be ...

100(1.03^8) ≈ 126.68