Question

Samuel deposits $100 in a high-interest account that has an interest rate of 10% compounded annually. Samuel decides to neither add to nor withdraw money from the account for the next 10 years. How much will be in his account in 3 years? How long will it take to accumulate $61 in interest?

Answer 1

After 3 years, $130 will be in his account. 100(1.3) = 130. To get $61, it will take 6.1 years, or 6 years and 2 months.

Answer 2

In 3 years, the value of Samuel’s account will be approximately $133

It will take about 5 years for Samuel’s account to earn $61 in interest.

Explanation:

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