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Kelsey has $100 in an account the interest-rate is 11% compounded annually to the nearest cent how much will she have in two years

Respuesta :

semsee45

Answer:

$123.21 (nearest cent)

Step-by-step explanation:

Annual Compound Interest Formula

[tex]\large \text{$ \sf A=P\left(1+r\right)^{t} $}[/tex]

where:

  • A = final amount
  • P = principal amount
  • r = interest rate (in decimal form)
  • t = time (in years)

Given:

  • P = $100
  • r = 11% = 0.11
  • t = 2 years

Substitute the given values into the formula and solve for A:

[tex]\implies \sf A=100\left(1+0.11\right)^{2}[/tex]

[tex]\implies \sf A=100\left(1.11\right)^{2}[/tex]

[tex]\implies \sf A=123.21[/tex]

Therefore, the value of the account in 2 years will be $123.21 (nearest cent).

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