If you deposit $10,000 in a savings account at an annual interest rate of 6%, how much will you have in the account at the end of three years?
A)$8396
B)$11,800
C)$11,910
D)$31,800

Question

Quizplus · Accepted Answer

The formula to calculate compound interest is: 
A = P * (1 + r/n)^(n*t)
where A is the amount in the savings account at the end of the t years, P is the principal amount deposited, 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.

In this case, P = $10,000, r = 6%, n = 1 (compounded annually), and t = 3.

A = 10,000 * (1 + 0.06/1)^(1*3)
A = 10,000 * (1.06)^3
A = $11,910.10

Therefore, the best choice is C, which is $11,910.

If You Deposit $10,000 in a Savings Account at an Annual