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Jason has $70 in a savings account that earns 5% interest, compounded annually.

To the nearest cent, how much interest will he earn in 2 years?

User Qmeeus
by
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2 Answers

7 votes
$77.175
Rounded to nearest cent would be $77.18
User Arthur Zennig
by
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4 votes

Answer:

$77.18

Explanation:

A = total amount

P = principal

I = interest

A = P(1 + r/n)^n·t

A = 70(1+.05)²

A = 70(1.05)²

A = 77.175

I = A - P

User Kekoa
by
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