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

Answer:

108.90

Step-by-step 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