Answer:
$2,247.20
Step-by-step explanation:
Lets use the compound interest to solve this problem:
<em>P = initial balance</em>
<em>r = interest rate (decimal)</em>
<em>n = number of times compounded annually</em>
<em>t = time</em>
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First, change 6% into a decimal:
6% -> -> 0.06
Now, plug the values into the equation:
The balance after 2 years will be $2,247.20