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

anonymous · Answer

The formula for compound interest is: 
$$FV= PV ( 1+r)^n$$
where FV= future value
          PV= present value
          r= interest ratio (as a decimal)
          n= no. of years

anonymous · Answer

$$FV= 2000( 1+ 0.11)^3= 2735.26$$

anonymous · Answer

So your answer is C.