Question

Greta deposited $3,812 in an account earning 10% interest compounded annually.
To the nearest cent, how much will she have in 1 year?
Use the formula B=p(1+r)t, where B is the balance (final amount), p is the principal (starting amount), r is the interest rate expressed as a decimal, and t is the time in years

Answer 1

B = 3812(1 + 0.10)^1 = 3812(1.10) = 3812 × 1.1 = 4193.20

She will have $4,193.20 after 1 year.