Question

Dalton has $40 in an account that earns 10% interest compounded annually.

To the nearest cent, what will be the total amount of money in
his account after two years?

$52.25

$40.00

$8.40

$48.40

Answer 1

$48.40
Formula for compound intrest = a(1+r/10)^n
40(1+10/100)^2
40x(11/2)^2
=48.4