Question

Emmet has $90 in a savings account that earns 10% interest, compounded annually.

To the nearest cent, how much interest will he earn in 3 years?

Answer 1

108.90

Explanation:

You start with finding

10

%

of

90

.

$

90

⋅

.1

=

$

9

You add the money and the interest to get

$

99

for the first year. However, the next year is different. It's compound interest, so you have to multiply

10

%

by

$

99

.

$

99

⋅

.1

=

$

9.90

$

99

+

$ 9.90

= $ 108.90 The total would then be $

108.90 i think lol