If interest is compounded annually, R100 placed in a bank account earning 10 percent interest should generate R30 interest after three years.

Name: If interest is compounded annually, R100 placed in a bank account earning 10 percent interest should generate R30 interest after three years.
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Quizplus · Accepted Answer

When interest is compounded annually at 10%, the interest is calculated on the new balance each year, not just the initial amount. After three years, the interest would be R33.10, not R30.

If Interest Is Compounded Annually, R100 Placed in a Bank