Question

If ray opens a savings account with $10,000 and the interest rate is 3.7% yearly, how much will she have in her account in 3 years (assuming she makes no deposits or withdrawals).

Answer 1

$11151.58

Explanation:

This is an exponential growth function so we insert our values into this equation:

`P(1+r)^t`

P= initial value (10000)

r= rate, as a decimal (.37)

t= years passed (3)

It should look like this once we substitute these variables for our values

`10000(1+.037)^3`

According to my calculator, this equals $11151.58

Thank me later :)