If Lauren deposits $9,000 in an account that pays 10% yearly interest,compounded annually,how much will she have in the account at the end of 3 years?
A)$8,990
B)$9,750
C)$10,909
D)$11,979
E)$12,500

Question

Quizplus · Accepted Answer

The amount in the account after 3 years can be calculated using the formula for compound interest: A = P(1 + r/n)^(nt), where A is the amount of money accumulated after n years, including interest, P is the principal amount ($9,000), r is the annual interest rate (10% or 0.10), n is the number of times that interest is compounded per year (1, since it's compounded annually), and t is the time the money is invested for in years (3). Plugging in the values: A = 9000(1 + 0.10/1)^(1*3) = 9000(1.10)^3 = $11,979.

If Lauren Deposits $9,000 in an Account That Pays 10