Question

Maria has 90$ in a saving account.The interest rate rise a 5% compounded annually.to the nearest cent, how much will he have in 3 years

Answer 1

$104.19

Explanation:

We will use the compound interest formula to solve this:

`A=P(1+(r)/(n) )^(nt)`

P = initial balance

r = interest rate (decimal)

n = number of times compounded annually

t = time

First, lets change 5% into a decimal:

5% ->
`(5)/(100)` -> 0.05

Now, plug the values into the equation:

`A=90(1+(0.05)/(1))^(1(3))`

`A=104.19`

After 3 years, Maria will have $104.19