Question

Trina has a college fund started with a deposit of $10,000 which earns 5% annually. If no other movies are deposited, how much money will Trina have in her fund at the end of three years?

Answer 1

The expression we would use to calculate the amount saved in the fund after t years is:

`10000(1+0.05)^t`

For 3 years (t = 3),

`10000(1+0.05)^3=11576.25`

Trina would have $11,576.25 in the fund