Jorge deposited $1,000 into an account three years ago.The first two years he earned 5 percent interest;the third year he earned 6 percent interest.How much money does Jorge have in his account today?
A)$1,157.90
B)$1,168.65
C)$1,176.00
D)None of the above are correct to the nearest cent.

Question

Quizplus · Accepted Answer

To find out the answer, we need to calculate the interest earned in the first two years and the interest earned in the third year separately, and then add them to the original deposit.

Interest earned in the first two years:
5% of $1,000 = $50
After one year: $1,000 + $50 = $1,050
5% of $1,050 = $52.50
Total interest earned in the first two years: $50 + $52.50 = $102.50

Interest earned in the third year:
6% of $1,102.50 (original deposit + interest earned in the first two years) = $66.15

Total amount after three years:
$1,000 + $102.50 + $66.15 = $1,168.65

Therefore, Jorge has $1,168.65 in his account today, which is option B.

Jorge Deposited $1,000 into an Account Three Years Ago