Assuming that no transaction happens in her account for those 2 years, the amount that Brooke will have in 2 years for given case is $8.47
If n is the number of times the interested is compounded each year, and 'r' is the rate of compound interest annually, then the final amount after 't' years would be:
[tex]a = p(1 + \dfrac{r}{n})^{nt}[/tex]
We're specified that:
Thus, we get the final amount's value (after 2 years of compounding) for this case as :
[tex]a = p(1 + \dfrac{r}{n})^{nt}\\\\a = 7(1 + 0.10)^2 = 7 \times (1.1)^2 = 7 \times 1.21 = 8.47 \: (\rm in \: dollars)[/tex]
Thus, assuming that no transaction happens in her account for those 2 years, the amount that Brooke will have in 2 years for given case is $8.47
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