Katie has $7 in a savings account. The interest rate is 5%, compounded annually.

To the nearest cent, how much interest will she earn in 3 years?

Compound interest earned would be $1.1034

Step-by-step explanation:

The formula for amount, when interest is compounded annually is

A = P (1+r) ^n

Here

A = amount

P = principal

r = rate of interest

n = time period

So putting the values in the formula

A = 7 (1+.05) ^3

A = 7 * (1.05) ^3

A = 7*1.157625

A = 8.1034

So the Compound Interest would be

C. I = 8.1034-7.0

C. I = 1.1034

15%

Step-by-step explanation:

I am not sure