sofia has $7,306 in an account. the interest rate is 8% compounded annually. to the nearest cent, how much…

Explanation:

Step1: Identify the compound - interest formula

The compound - interest formula is $A = P(1 + r)^t$, 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 number of years the money is invested for.

Step2: Convert the interest rate to decimal form

The interest rate $r = 8%=0.08$, the principal amount $P=$7306$, and the number of years $t = 2$.

Step3: Substitute the values into the formula

$A=7306\times(1 + 0.08)^2$. First, calculate $(1 + 0.08)^2=(1.08)^2 = 1.1664$. Then, $A = 7306\times1.1664$. $A=7306\times1.1664 = 8521.0184$.

Step4: Round to the nearest cent

Rounding $8521.0184$ to the nearest cent gives $8521.02$.

Answer:

$8521.02$