Question

Hi can ask if you know what the answer to this is?

Answer 1

Answer:

a) The amount of money that will be in the account after 2 years = $11444.4

b) The interest earned = $444.4

Step-by-step explanation:

The principal, P = $11000

The interest rate, r = 2% = 2/100

r = 0.02

Number of times interest is compounded per year, n = 1

Time, t = 2 years

The amount after 2 years is calculated below

`\begin{gathered} A=P(1+(r)/(n))^(nt) \\ \\ A=11000(1+(0.02)/(1))^(1(2)) \\ \\ A=11000(1.02)^2 \\ \\ A=11444.4 \end{gathered}`

The amount of money that will be in the account after 2 years = $11444.4

The interest = Amount - Principal

Interest = $11444.4 - $11000

Interest = $444.4

The interest earned = $444.4