94.0k views
14 votes
In money in a savings account earned 8.5% intrest per annum, how much interest would be earned on $200.00 over two years?

User Darkpotpot
by
8.4k points

1 Answer

13 votes

Answer:

$1305.91

Explanation:

To solve this, we can use the geometric sequence formula


\alpha _n=a_1*r^n^-^1

If we plug in our values we get
\alpha _n=200*1.085^2^3

Thus, leaving us with 1305.91

Hope this helps

User Alextsc
by
8.0k points

Related questions

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories