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You deposit $877.54 at an interest rate of 10% for 2 years. How much money will you have at the end? Round to the nearest cent.

User Flambino
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1 Answer

5 votes

Final answer:

You will have an amount of $967.49 at the end of 2 years.

Step-by-step explanation:

Calculating the total amount after interest

Here's how to calculate the total amount you will have after 2 years:

Calculate the annual interest:

Annual interest = Principal amount * Interest rate

Annual interest = $877.54 * 10% = $87.75

Calculate the total interest for 2 years:

Total interest = Annual interest * Number of years

Total interest = $87.75 * 2 = $175.50

Calculate the final amount:

Final amount = Principal amount + Total interest

Final amount = $877.54 + $175.50 = $1053.04

Therefore, you will have $967.49 at the end of 2 years.

User Patrick Q
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