Christopher deposited $1 in a savings account earning 10% interest, compounded annually.
To the nearest cent, how much interest will he earn in 3 years?

To the nearest cent, Christopher will earn $ 0.13 in 3 years

Step-by-step explanation:

Let's recall that the formula of the compounded interest is:

A = P * (1 + r/n)^nt, where

A = Future value

P = Initial deposit

r = Interest rate

n = number of times interest applied per time period

t = number of time periods elapsed

Replacing with the values we know:

A = P * (1 + r/n)^n

A = 1 * (1 + 0.1/1) ³°¹

A = 1 * 1.1³

A = 1 * 1.1331

A = 1.13

Interest = Future value - Initial deposit

Interest = 1.13 - 1

Interest = 0.13

step-by-step explanation:

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