3
QuizMultiple Choice

Credit and Loans

Question 3 • 2027 Ignite Financial Literacy-Personal Finance - EL3403

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

Answer
A
$10.00
B
$21.00
C
$33.10
D
$46.41

Explanation

Compound interest is the final balance minus the original loan. After three years, the balance is $100 × 1.10³ = $133.10, so the interest is $133.10 − $100 = $33.10. The correct choice is $33.10.

AI-written and checked against the verified answer.

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