what is the compound interest on a three-year, $100.00 loan at a 10 percent annual interest…
what is the compound interest on a three-year, $100.00 loan at a 10 percent annual interest rate?$10.00$21.00$33.10$46.41
Answer
Explanation:
Step1: Recall compound amount formula
The formula for compound amount is $A = P(1 + r)^t$, where $P$ is principal, $r$ is annual rate, $t$ is time in years.
Step2: Plug in given values
$P = 100$, $r = 0.10$, $t = 3$. So $A = 100(1 + 0.10)^3 = 100(1.10)^3$
Step3: Calculate compound amount
$(1.10)^3 = 1.331$, so $A = 100 \times 1.331 = 133.10$
Step4: Compute compound interest
Compound interest = $A - P = 133.10 - 100 = 33.10$
Answer:
$33.10$ (Option C: $33.10$)