Question

Rachel has $9 in a savings account. The interest rate is 5%, compounded annually.
To the nearest cent, how much interest will she earn in 3 years?

Answer 1

1 % of 9 is 0.09, multiply 0.09 by 5= 0.45 (to find 5%)
Then multiply 0.45 by 36 (3years)= 16.20
Then add 16.20 to $9= $25.20