Question

Hannah is saving money to buy some lirns. She invests $290 in a savings account that earns 7.6% interest, compounded annually. How much money will she have in her account after 2 years? Answer in dollars and round to the nearest cent.

Answer 1

Principal amount, P= $290.

Rate, r = 0.076

Time, t = 2

Therefore, the total amount in her account after 2 years is

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

Hence,

`\begin{gathered} A=290(1+0.076)^2 \\ =335.755 \end{gathered}`

Therefore, the amount is 335.80 dollars.

That is, 335 dollars and 80 cents.