Question

Tammy deposited $20 in an account earning 10% interest compounded annually. To the nearest cent, how much interest will she earn in 3 years?

Answer 1

Explanation:

10 % = .10 rate, r, in decimal form

interest = p r t p = principal deposit = $ 20 t = time in years

Interst = $ 20 (.10)( 3 ) = $ 6.00