Suppose that you invested $100 in a bank account that earned an annual rate of return of 10%.How much would you have in that bank account at the end of 10 years?
A)$259.37
B)$238.55
C)$293.74
D)$214.46
E)$279.23

Question

Quizplus · Accepted Answer

The amount in the bank account at the end of 10 years can be calculated using the formula for compound interest: A = P(1 + r)^n, where A is the amount of money accumulated after n years, including interest, P is the principal amount (the initial amount of money), r is the annual interest rate (decimal), and n is the time the money is invested for in years. Here, P = $100, r = 10% or 0.10, and n = 10 years. Plugging these values into the formula gives A = 100(1 + 0.10)^10 = $259.37.

Suppose That You Invested $100 in a Bank Account That