15) $1,240 at 8% compounded annually for 2 years
15) $1,240 at 8% compounded annually for 2 years
Answer
Explanation:
Step1: Identify compound - interest formula
The compound - interest formula is $A = P(1 + r)^t$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the number of years.
Step2: Convert the percentage to decimal
Given $r = 8%=0.08$, $P=$1240$, and $t = 2$ years.
Step3: Substitute values into the formula
$A=1240\times(1 + 0.08)^2$. First, calculate $(1 + 0.08)^2=(1.08)^2 = 1.1664$. Then, $A=1240\times1.1664$. $A = 1446.336$.
Answer:
$$1446.34$ (rounded to the nearest cent)