Victor has $40 in a savings account. The interest rate is 5%, compounded annually.
To the nearest cent, how much interest will he earn in 3 years?

$6.31

Step-by-step explanation:

We are going to use the compound simple interest formula for this problem:

P = initial balance

r = interest rate (decimal)

n = number of times compounded annually

t = time

Our first step is to change 5% into its decimal form:

5% -> -> 0.05

Next, plug in the values:

Lastly, subtract 40 (our original value) from 46.31:

Victor earned $6.31 in interest after 3 years.

i think is 3 and 6. this took me 10 min to think.hope to and hope that my answer is brainliest.(follow me )

imma say 16%. sorry if its wrong. i'm doing the same stuff right now

step-by-step explanation: