Which of the following statements is not true?

Question

Quizplus · Accepted Answer

The correct calculation for compound interest over two years at a 10% annual rate on $100 would result in an amount less than $220. The formula for compound interest is $A = P(1 + r)^n$, where $A$ is the amount of money accumulated after n years, including interest, $P$ is the principal amount ($100), $r$ is the annual interest rate (10% or 0.10), and $n$ is the time the money is deposited or borrowed for, in years. After two years, the calculation would be $A = 100(1 + 0.10)^2$, which equals $121, not $220.

Which of the Following Statements Is Not True