# Sally puts \$200.00 in a bank account. This account earns 8% compound interest. How much money is in the account after three years?

A
\$151.94
B
\$240.00
C
\$251.94
D
\$160.00

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?

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14. B
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16. C

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## To solve this problem, we can use the formula for compound interest:

A = P(1 + r/n)^(nt)

Where:
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.