PLEASE SHOW WORK!!!

Question

Paula saved two birthday checks. one was 100 and the other was double that amount.if she deposits them in an account that pays 6% compounded interest, how much interest will she earn after 5 years? Please show work!

A.$ 40.15

B. $101.47

C. $133.82

D.$401.47

Answer 1

I'm assuming a yearly compounding, so the total compound interest earned is:

CI = P((1+r/n)^nt - 1) where n = 1 for yearly.

The principal is $100 + $200 = $300

Time period t = 5 years

300((1+ .06)⁵ -1) = $101.47 = B.