If you put $300 into a savings account that pays annual compound interest of 10% per year and then withdraw the money two years later,you will earn interest of $63.

Question

Quizplus · Accepted Answer

The formula for compound interest is A = P(1 + r/n)^(nt), where A is the final amount, P is the principal (initial amount), r is the annual interest rate, n is the number of times per year that the interest is compounded, and t is the number of years. In this case, P = $300, r = 10%, n = 1 (since the interest is compounded annually), and t = 2. Plugging these values into the formula, we get A = $300(1 + 0.10/1)^(1*2) = $363. Therefore, the interest earned is $363 - $300 = $63.

If You Put $300 into a Savings Account That Pays