Kathy deposited $100 in a savings account that paid 8% interest,compounded annually.How much compound interest did she earn after 2 years?
A) $15.64
B) $16.64
C) $8.08
D) $8.00
E) $8.64

Question

Quizplus · Accepted Answer

FV = PV × 11ea7fdb_fc26_392c_a768_595a35464a27_TB2902_00 FV = 100 × 11ea7fdb_fc26_392d_a768_9b9b0ea78e42_TB2902_00 = $116.64
$116.64 - 100 = $16.64
Using a financial calculator:
N = 2, I/Y = 8, PV = -100, PMT = 0, cpt FV = $116.64116.64 - 100 = $16.64

Kathy Deposited $100 in a Savings Account That Paid 8