Suppose you deposit $100 in the bank and leave it there for 10 years. At the end of 10 years, how much will be in my account if the annual rate of interest is 5 percent?
A)$150
B)$163
C)$105
D)$200
E)$175

Question

Quizplus · Accepted Answer

The amount of money in the account after 10 years can be calculated using the formula A=P(1+r)^t where A is the amount, P is the principal (initial deposit), r is the rate of interest per year, and t is the number of years.

Plugging in the values, we get
A = 100(1+0.05)^10
A = $162.89

Rounding up to the nearest cent, the answer is $163. Therefore choice B is correct.

Suppose You Deposit $100 in the Bank and Leave It