Question

Annie has $9,000 in an account that earns 5% interest compounded annually.

To the nearest cent, how much interest will she earn in 2 years?
Use the formula B=p(1+r)t, where B is the balance (final amount), p is the principal (starting amount), r is the interest rate expressed as a decimal, and t is the time in years.
$

Answer 1

B=$18900.00

Explanation:

B=?

P=9000

r=5%=0.05

t=2

B=p(1+r)t

B=9000×(1+0.05)×2

B=9000×(1.05)×2

B=9000×2.1

B=18900