Asked by boi

Sally puts $200.00 in a bank account. This
account earns 8% compound interest. How much
money is in the account after three years?

A $151.94
B $240.00
C $251.94
D $160.00

Please help me!
Answered by boi
anybody? Please? God bless you.
Answered by Ms. Sue
Do you see which two answers which are obviously wrong?
Answered by boi
I don't know how to do this Ms. Sue! Please guide me through the proses, please.
Answered by Ms. Sue
Please answer my question. Which two answers are obviously wrong?

Answered by boi
Wait, is the answer D?
Answered by boi
the two obviously wrong answers are A, $151.94 and C, $251.94... right?
Answered by Damon
200*1.08^3
Answered by Ms. Sue
You're guessing.

You don't seem to know what it means to earn interest on a bank account.

When you earn interest, you put some money into the bank. The bank then pays you a small amount of money on your money. Typically, today the interest rate is 1%. If you put $200 in the bank, the bank would pay you $2.00 at the end of the year. So -- your account would be worth $202.00.

Check your text to find the formula for finding compound interest.

Answered by Ms. Sue
Or use Damon's formula.

Answered by boi
Thank you, Damon, God bless you.
Answered by Ms. Sue
Do you see that the two answers that are smaller than $200 are wrong?

Answered by boi
Ok, i got it Ms Sue, thanks
Answered by Ms. Sue
You're welcome.\
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