what is the balance after 2 years in a savings account with an initial investment of $1,250 and a 2% annual…

Explanation:

Step1: Identify compound - interest formula

The compound - interest formula is $A = P(1 + r)^t$, where $A$ is the final amount, $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the number of years.

Step2: Convert the interest rate to decimal

Given $r = 2%=0.02$, $P=$1250$, and $t = 2$ years.

Step3: Substitute values into the formula

$A=1250\times(1 + 0.02)^2$. First, calculate $(1 + 0.02)^2=(1.02)^2 = 1.0404$. Then, $A = 1250\times1.0404$. $A=1250\times1.0404 = 1300.5$.

Answer:

$1300.5$