Anna deposited $10,000 into an account three years ago.The first year she earned 12 percent interest,the second year she earned 8 percent interest,and the third year she earned 4 percent interest.How much money does she have in her account today?
A)$12,579.84
B)$12,596.80
C)$12,597.12
D)None of the above are correct to the nearest cent.

Question

Quizplus · Accepted Answer

The correct answer is A because:Anna earned 12% interest the first year, which is $10,000 x 0.12 = $1,200. This brings her balance to $11,200. The second year, she earned 8% interest, which is $11,200 x 0.08 = $896. This brings her balance to $12,096. The third year, she earned 4% interest, which is $12,096 x 0.04 = $483.84. This brings her balance to $12,579.84.

Anna Deposited $10,000 into an Account Three Years Ago