Anna deposited $10,000 into an account three years ago.The first year she earned 12 percent interest,the second year she earned 8 percent interest,and the third year she earned 4 percent interest.How much money does she have in her account today?
A)$12,579.84
B)$12,596.80
C)$12,597.12
D)None of the above are correct to the nearest penny.

Question

Quizplus · Accepted Answer

The correct answer is A.The interest earned in the first year is $10,000 * 12% = $1,200. The balance after the first year is $10,000 + $1,200 = $11,200. The interest earned in the second year is $11,200 * 8% = $896. The balance after the second year is $11,200 + $896 = $12,096. The interest earned in the third year is $12,096 * 4% = $483.84. The balance after the third year is $12,096 + $483.84 = $12,579.84.

Anna Deposited $10,000 into an Account Three Years Ago