Answer:
Step-by-step explanation:
We are using the formula I=PRT and calculating simple interest.
<em>I</em> is the interest, <em>P</em> is the principal or starting amount, <em>R </em> is the interest rate as a decimal, and <em>T</em> is the time in years.
We know that there is $1555.00 at 8% for 2 years. First, convert the interest rate to a decimal. Divide the rate by 100 or move the decimal place 2 spots to the left.
- 8/100 = 0.08
- 8. --> 0.8 --> 0.08
Now we know all the values:
- P= 1555.00
- R= 0.08
- T= 2
Substitute the values into the formula.
Multiply.
The account earned $248.80 in interest, but the question asks for the total amount in the account. We must add the interest to the starting amount.
After 2 years, the savings account had <u>$1803.80</u>