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Andreas93 [3]
2 years ago
10

$100 is invested at 12% per year. If the amount is compounded annually, write the total amount after 2 years in exponential func

tion form.
Mathematics
1 answer:
Sladkaya [172]2 years ago
7 0

Answer:

A = $100(1.12)^2

Step-by-step explanation:

The standard formula for compound interest is given as;

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

Where;

A = final amount/value

P = initial amount/value (principal)

r = rate yearly

n = number of times compounded yearly.

t = time of investment in years

For this case;

P = $100

t = 2years

n = 1

r = 12% = 0.12

Substituting the values, we have;

A = $100(1+0.12)^(2)

A = $100(1.12)^2

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