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Luda [366]
3 years ago
5

Allie deposited $80 in a savings account earning 10% interest, compounded annually. To the nearest cent, how much will she have

in 2 years?
Mathematics
1 answer:
77julia77 [94]3 years ago
5 0

Answer: $96.8

Step-by-step explanation:

Formular for Compounding annually :

A =P ( 1 + r/n) ^nt

Where p is the Principal given as $80

r is the rate given as 10% = 10/100 = 0.1

n is the number of times the principal was compounded, given as 1

t is the time, given as 2 years:

Slot the values into the formula:

A= $80 ( 1 + 0.1/1) ^ (1 × 2)

A= $80 ( 1 + 0.1) ^2

A= $80 ( 1.1) ^2

A= $80 (1.21)

A= $80 x 1.21

A= $96.8

96.8 is already rounded to the nearest cent.

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