Question

For the investment with interest compounded annually, find the final balance and total interest earned. $1200 for 2 years at 10%

Answer 1

@futureescape

Answer 2

@jim_thompson5910

Answer 3

Use the formula

\[\Large A = P(1+\frac{r}{n})^{n*t}\]

Answer 4

In this case,

P = 1200
r = 0.10
n = 1 (compounding annually, so 1 time per year)
t = 2