Answer:
Part a) The equation that represent the balance in the account after 2 years is equal to
![\$1,000(1+\frac{0.013}{1})^{1*2}](https://tex.z-dn.net/?f=%5C%241%2C000%281%2B%5Cfrac%7B0.013%7D%7B1%7D%29%5E%7B1%2A2%7D)
Part b) The balance in the account after 2 years is equal to ![\$1,026.17](https://tex.z-dn.net/?f=%5C%241%2C026.17)
Step-by-step explanation:
we know that
The compound interest formula is equal to
where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest in decimal
t is Number of Time Periods
n is the number of times interest is compounded per year
in this problem we have
substitute in the formula above
----> equation that represent the balance in the account after 2 years
![A=\$1,000(1+\frac{0.013}{1})^{1*2}=\$1,026.17](https://tex.z-dn.net/?f=A%3D%5C%241%2C000%281%2B%5Cfrac%7B0.013%7D%7B1%7D%29%5E%7B1%2A2%7D%3D%5C%241%2C026.17)