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

Answer 1

Hey there! I have an equation that would work for a question like this!

A = P(1 + r/n)^(nt)

where A is the final amount of money in the account, P is the principal (initial) amount of money in the account, r is the annual interest rate, n is the number of times the interest is compounded per year, and t is the number of years the money is left in the account.

In this case, P = $10, r = 5%, n = 1 (since the interest is compounded annually), and t = 3. Plugging these values into the formula, we get:

A = $10(1 + 0.05/1)^(1*3)

= $10(1.05)^3

= $10(1.1576)

= $11.58

To the nearest cent, Spencer will have $11.58 in the account in 3 years.