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2 votes
Savings account
deposit $800
rate 6%
time 2 years

User Kartos
by
8.6k points

1 Answer

2 votes

Final answer:

To calculate the amount in the savings account after 2 years, we can use the formula for compound interest. In this case, the amount will be approximately $898.88.

Step-by-step explanation:

To calculate the amount in the savings account after 2 years, we can use the formula for compound interest: A = P(1 + r/n)^(nt), where A is the final amount, P is the initial deposit, r is the rate, n is the number of times interest is compounded per year, and t is the time in years.

In this case, the initial deposit is $800, the rate is 6% (which can be written as 0.06), and the time is 2 years. Let's assume that the interest is compounded annually, so n = 1.

Using the formula, we have:

A = 800(1 + 0.06/1)^(1 * 2)

A = 800(1 + 0.06)^2

A = 800(1.06)^2

A = 800 * 1.1236

A = $898.88

Therefore, the amount in the savings account after 2 years will be approximately $898.88.

User Patemotter
by
8.1k points