Question

Andy has $7,411 in a savings account. The interest rate is 11%, compounded annually.

To the nearest cent, how much interest will he earn in 2 years?
Use the formula B = P(1 + r), 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.
Submit
Please help :)

Answer 1

$1720.0931 will earn as interest in 2 years

Explanation:

Principal = $7411

Rate of interest = 11% compounded annually

Time = 2 years

Formula :
`A = P(1+r)^t`

`A=7411(1+0.11)^2`

A=9131.0931

Interest = Amount - Interest =$9131.0931 - $7411

Interest = $1720.0931

Hence $1720.0931 will earn as interest in 2 years