# You opened a three year savings account with annual interest rate of 10%. Approximately how much will you have in this savings account 3 years from now if you deposit \$100 today?

## 2 Answers

David Shabazi answered

Since the annual interest rate is 10%, it means whatever amount of money you put into that account, you will get 10% of it more every year.

So for three years, if you put \$100 into it, you're getting 10% of \$100, which is just \$10, for the first year.

\$100 + \$10 = \$110

Second year:

\$110 + \$11 = \$121

Third year:

\$121 + \$12.10 = \$133.10 <--- This is what you will have in three years.

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Anonymous answered

If you opened a three year savings account with annual interest rate of 10% that means that the amount in your account will be increased by 10% ever single year. The example above has made a good demonstration of how, in 3 years time, you will have \$133.10 but my advice is, if you are getting that kind of interest rate on your savings account, you should be putting a hell of a lot more money into it than \$100. Heck some lenders might even allow you to borrow money at a lower interest rate than so just stick the loan into the account, build up interest, pay back the loan and have some cash left over!!!

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