Question
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!
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!
Answers
boi
anybody? Please? God bless you.
Ms. Sue
Do you see which two answers which are obviously wrong?
boi
I don't know how to do this Ms. Sue! Please guide me through the proses, please.
Ms. Sue
Please answer my question. Which two answers are obviously wrong?
boi
Wait, is the answer D?
boi
the two obviously wrong answers are A, $151.94 and C, $251.94... right?
Damon
200*1.08^3
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.
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.
Ms. Sue
Or use Damon's formula.
boi
Thank you, Damon, God bless you.
Ms. Sue
Do you see that the two answers that are smaller than $200 are wrong?
boi
Ok, i got it Ms Sue, thanks
Ms. Sue
You're welcome.\