Tiana deposited $60 in an account earning 10% interest compounded annually.
To the nearest cent, how much will she have in 3 years?
$___
To calculate the future value of the deposit with compound interest, we use the formula:
A = P(1 + r/n)^(nt)
Where:
A = the future value of the deposit
P = the principal (initial deposit)
r = interest rate (in decimal form)
n = number of times interest is compounded per year
t = number of years
In this case:
P = $60
r = 10% = 0.10
n = 1 (compounded annually)
t = 3 years
Substituting these values into the formula:
A = $60(1 + 0.10/1)^(1*3)
A = $60(1.10^3)
A = $60(1.331)
A ≈ $79.88
Therefore, Tiana will have approximately $79.88 in 3 years.