If the money and interest are left in the bank, how much is the total savings after three years for $2,000 at 11% annually compounded interest?
A. $348.18
B. $1,390.35
C. $2,735.26
D. $3,200.50

Question

If the money and interest are left in the bank, how much is the total savings after three years for $2,000 at 11% annually compounded interest?
	A.	$348.18
	B.	$1,390.35
	C.	$2,735.26
	D.	$3,200.50

amistre64 · Answer

3 years is a pretty short time, so a long version wont be that difficult to work thru

amistre64 · Answer

Y1 = B + Br
Y2 = (B + Br)+(B + Br)r
Y3 = ((B + Br)+(B + Br)r) + ((B + Br)+(B + Br)r)r

amistre64 · Answer

as a rule of thumb, we shouldnt be less than what we started with ... so

A.	$348.18
B.	$1,390.35

are just pointless

anonymous · Answer

C?

amistre64 · Answer

C would seem like a safe bet, but i havent tried to calculate it

Y3 simplifies to:  B(1+r)^3 so

2000(1.11)^3

amistre64 · Answer

yep