andy has $1,000 in an account. the interest rate is 15% compounded annually. to the nearest cent, how much…

Answer:

$1322.50

Explanation:

Step1: Identify the compound - interest formula

$A = P(1 + r)^t$ where $A$ is the amount of money accumulated after $n$ years, including interest, $P$ is the principal amount (the initial amount of money), $r$ is the annual interest rate (in decimal form), and $t$ is the time the money is invested for in years.

Step2: Convert the interest rate to decimal

$r=15% = 0.15$

Step3: Substitute the values into the formula

$P = 1000$, $r = 0.15$, $t = 2$ $A=1000\times(1 + 0.15)^2$

Step4: Calculate the value inside the parentheses first

$1+0.15 = 1.15$

Step5: Calculate the exponent

$(1.15)^2=1.15\times1.15 = 1.3225$

Step6: Multiply by the principal

$A = 1000\times1.3225=1322.5$ So, Andy will have $1322.50$ in 2 years.