maggie opened a savings account and deposited $10,000.00 as principal. the account earns 4% interest…

maggie opened a savings account and deposited $10,000.00 as principal. the account earns 4% interest, compounded annually. what is the balance after 2 years? use the formula a = p(1 + r/n)^nt, where a is the balance (final amount), p is the principal (starting amount), r is the interest rate expressed as a decimal, n is the number of times per year that the interest is compounded, and t is the time in years. round your answer to the nearest cent. $

maggie opened a savings account and deposited $10,000.00 as principal. the account earns 4% interest, compounded annually. what is the balance after 2 years? use the formula a = p(1 + r/n)^nt, where a is the balance (final amount), p is the principal (starting amount), r is the interest rate expressed as a decimal, n is the number of times per year that the interest is compounded, and t is the time in years. round your answer to the nearest cent. $

Answer

Explanation:

Step1: Identify the values

$P = 10000$, $r=0.04$, $n = 1$, $t = 2$

Step2: Substitute into the formula

$A=10000\times(1+\frac{0.04}{1})^{1\times2}$

Step3: Calculate the value inside the parentheses

$1+\frac{0.04}{1}=1 + 0.04=1.04$

Step4: Calculate the exponent

$(1.04)^{2}=1.04\times1.04 = 1.0816$

Step5: Calculate the final amount

$A=10000\times1.0816=10816$

Answer:

$10816.00$