Answer:
$1,408.21.
Step-by-step explanation:
Since it is compounded annually we could use the formula
A=Pe^rt
We know that the initial amount she deposits is $1200, as stated by the problem. That is our P.
e is well, the e in your calculator which is approximately: 2.7182818284590452353602874713527
r is the rate which is 8%, although you must convert this into a decimal, which would be 0.08 as your r.
Lastly, t is the time, so in this case, 2 years.
And then plug in the values.
A=1200(e)^(0.08)(2)
A=1200(e)^(0.16)
A=1200(1.173510870991810235018611086892)
A=1,408.2130451901722820223333042704
Now since it is a money problem we must put it in the correct format.
A=$1,408.21
