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
Please help me!
anybody? Please? God bless you.
I don't know how to do this Ms. Sue! Please guide me through the proses, please.
Wait, is the answer D?
200*1.08^3
You're guessing.
You don't seem to know what it means to earn interest on a bank account.
When you earn interest, you put some money into the bank. The bank then pays you a small amount of money on your money. Typically, today the interest rate is 1%. If you put $200 in the bank, the bank would pay you $2.00 at the end of the year. So -- your account would be worth $202.00.
Check your text to find the formula for finding compound interest.