what is the compound interest on a three - year, $100.00 loan at a 10 percent annual interest rate? $10.00…

Answer:

C. $33.10

Explanation:

Step1: Recall compound - interest formula

$A = P(1 + r)^n$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $n$ is the number of years. Here, $P=$100$, $r = 0.1$ (since $10%=0.1$), and $n = 3$.

Step2: Calculate the amount $A$

$A=100\times(1 + 0.1)^3=100\times(1.1)^3=100\times1.331=$133.1$.

Step3: Calculate compound interest

Compound Interest $=A - P$. $CI=133.1−100=$33.1$.