Respuesta :
The amount that Rachel would have in her account after 3 years with annual compounding is $11.58.
What would be the worth of the account in 3 years?
When interest is compounded annually, it means both the amout deposited and the interest already accrued increases in value once a year.
The formula for calculating future value:
FV = P (1 + r)^n
- FV = Future value
- P = Present value
- R = interest rate
- N = number of years
$10 x (1.05)^3 = $11.58
To learn more about future value, please check: https://brainly.com/question/18760477
