Audrey deposited $10,000 into a 3-year certificate of deposit that earned 10 percent annual interest, compounded annually. Audrey made no additional deposits to or withdrawals from the certificate of deposit. What was the value of the certificate of deposit at the end of the 3-year period?

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Answer:

$13,310

Step-by-step explanation:

Your formula is A=P(1+r/n)^nt

P is what you put into the account = 10,000

R is the interest rate as a decimal = .1

T is the time in years= 3

In the formula this would be:

10,000(1+.1/1)^3

Use a calculator.

The answer is 13,310

If Audrey deposited $10000 into a 3 year certificate of deposit that  earned 10 percent compounded annually then  he will receive $13310 at the end of 3 years.

What is compound interest?

The interest which is calculated on the principal and the accumulated interest is known as compound interest.

How to calculate sum after compounding?

The sum after compounding can be defined as [tex]P(1+r)^{t}[/tex]

In this case the amount after  3 years can be calculated as under:

[tex]10000(1+0.10)^{3} \\=10000(1.10)^{3} \\=10000*1.331\\=$13310[/tex]

Hence Audrey will find $13310 the value of certificate of deposit after 3 years.

Learn more about compound interest at https://brainly.com/question/24924853

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