Sally puts $200.00 in a bank account. This account earns 8% compound interest. How much money is in the account after three years?
I really need help on how to solve this, I tried all the stuff I learned this unit, but I can't really solve it correctly, so I'd really appreciate help.
Thank you very much!
My answer is 251.94, is that correct?
Unit 6 lesson 6 Portfolio PreAlgebra answers for Triand.
Wow is correct
To solve this problem, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
A = future amount (the total money in the account after a certain time)
P = principal amount (the initial amount that Sally puts in the account)
r = annual interest rate (in decimal form)
n = number of times the interest is compounded per year
t = number of years
In this case, P = $200.00, r = 8% (or 0.08 as a decimal), n = 1 (as the interest is compounded annually), and t = 3.
Plugging these values into the formula, we get:
A = 200(1 + 0.08/1)^(1*3)
A = 200(1.08)^3
A ≈ $251.94
So the answer is C, $251.94. After three years, Sally will have $251.94 in her bank account.