Question

Mr. Robbins sold his house and deposited his $80,000 earnings into a savings account for one year. The account compounds at an annual rate of 3%. How much money will be in the account after one year?

Answer 1

$82,400.00

Explanation:

Use the formula:

Interest= Principal ( 80,000) x Rate ( 3%) x Time (1 year) + Principal (80,000)

80,000 x 3% x 1 = 2,400

2,400+ 80,000= 82,400.00