The formula for compound interest is where A is the amount accumulated from a principal of P dollars left untouched for n years with an annual interest rate r (expressed as a decimal). Use this formula and a calculator to find A to the nearest cent.
-P = $50, r = 0.10, n = 3
A) $166.55
B) $66.55
C) $165.00
D) $166,375.00

Question

The formula for compound interest is  where A is the amount accumulated from a principal of P dollars left untouched for n years with an annual interest rate r (expressed as a decimal). Use this formula and a calculator to find A to the nearest cent. 
-P = $50, r = 0.10, n = 3
A) $166.55 
B) $66.55 
C) $165.00 
D) $166,375.00

Quizplus · Accepted Answer

The correct answer is found by calculating the future value of an investment using the formula for compound interest: FV = P(1 + r)^n. Plugging in the given values: FV = $50(1 + 0.10)^3 = $66.55.

The Formula for Compound Interest Is Where a Is