Question

If the APY of a savings account is 2.4% and if the principal in the savings account is $2200 for an entire year, what will be the balance of the savings account after all the interest is paid for the year? A. $2200 B. $2252.80 C. $2300 D. $2205.28

Answer 1

Answer: 2252.80 {apex}

Step-by-step explanation:I just took the test

Answer 2

To solve this problem, we must recall that the formula for money with compound interest is calculated as:

Total = Principal × ( 1 + Rate ) ^ n

Total = $2,200 × ( 1 + 0.024 ) ^ 1

Total = $2,252.80

Therefore the answer is letter B.