bao was given a $1000 for his birthday.he decided to invest the money in a bank account that earns 10% interest.compounded annually. How much total interest will Bao be earned 3 years later in dollars

Question

Please help with this problem ASAP

Answer 1

After 1 year $1000 will earn $100 interest so the amount will rise to $1100. After the second year $1100 will earn $110 interest, making the total $1210. And after the third year this will earn $121 making the total $1331. So the interest after 3 years is 1331-1000=$331.

Answer 2

Bao was given $1000 for his birthday. He decided to invest the money in a bank account that earns 10% interest, compounded annually. In dollars, how much total interest will Bao have earned 3 years later?

 

Answer:

Each year, the amount of money in the account is multiplied by 1.1. Therefore, after 3 years the amount of money is  dollars. The interest earned is  dollars.