A student deposited $800 in a savings account that pays 3% annual interest. At the end of 10 years, how much money will be in the savings account?
A) $1875.13
B) $1075.13
C) $1840.00
D) $1040.00

Question

Quizplus · Accepted Answer

The future value of the savings account can be calculated using the formula for compound interest: FV = P(1 + r)^n, where P is the principal amount ($800), r is the annual interest rate (0.03), and n is the number of years (10). Plugging in the values, FV = 800(1 + 0.03)^10 = 800(1.34391638) ≈ $1075.13.

A Student Deposited $800 in a Savings Account That Pays