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Rachel deposited $10 in an account earning 5% interest compounded annually.
To the nearest cent, how much interest will she earn in 3 years?

Respuesta :

The amount that Rachel would have in her account after 3 years with annual compounding is $11.58.

What would be the worth of the account in 3 years?

When interest is compounded annually, it means both the amout deposited and the interest already accrued increases in value once a year.

The formula for calculating future value:

FV = P (1 + r)^n

  • FV = Future value
  • P = Present value
  • R = interest rate
  • N = number of years

$10 x (1.05)^3 = $11.58

To learn more about future value, please check: https://brainly.com/question/18760477

Answer:

1.58

Step-by-step explanation:

its right