Question

Which amount is closest to the balance of the account at the end of 2 years?

Answer 1

Using the compound interest formula;

`A=P(1+(r)/(n))^(nt)`

where p is the principal

r is the rate

t is the time

n is the number of time it is compounded

P = $2500

r = 0.065

n = 1

t = 2

substitute into the formula

`A=2500(1+(0.065)/(1))^(1*2)`