Question

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11. If you put $100 in the bank today, at 8 percent compound interest per year,...

11. If you put $100 in the bank today, at 8 percent compound interest per year, how much interest will you have earned at the end of 5 years?

Group of answer choices

a. $8

b. $23.47

c. $32.48

d. $46.93

Solutions

Expert Solution

FV = PV(1 + r)^t

FV = $100(1 + 0.08)^5

FV = $146.93

Interest = FV - PV

Interest = $146.93 - $100

Interest = $46.93

jeff jeffy answered 2 years ago
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