Question

Clare made $160 babysitting last summer. She put the money in a savings account that pays 3% interest per year. If Clare doesn't touch the money in her account, she can find the amount she'll have the next year by multiplying her current amount by 1.03. How much will she have in 30 years

Answer 1

$388.36

Explanation:

let us assume that the amount in her accounts compounds annually

Given data

principal p= $160

interest rate r= 3%= 0.03

time t= 30 years

At the end of 30 years the money she will will have can be expressed as

A= P(1+r)^t

A= 160(1+0.03)^30

A= 160(1.03)^30

A= 160*2.42726

A= $388.36

in 30 years she will have $388.36