Question

Interest is compounded annually. Find the amount in the account after the given time.

Principal= $200
APR= 5%
Time= 2 years
The amount in the account is $?

Answer 1

is it 20?

Answer 2

No. It's 220.50 because you have to use the formula:
\[A = P(1 + \frac{r}{n})^{nt}\]where P = principal
r = rate in decimal form
n = number of times compounded a year
t = number of years

Answer 3

\[200(1.05)^2\]

Answer 4

220.5?

Answer 5

Yup.

Answer 6

thank you:)