trudy deposited $8,307 in an account earning 1% interest compounded annually. to the nearest cent, how much…

trudy deposited $8,307 in an account earning 1% interest compounded annually. to the nearest cent, how much will she have in 2 years? use the formula b = p(1 + r)^t, where b is the balance (final amount), p is the principal (starting amount), r is the interest rate expressed as a decimal, and t is the time in years.

trudy deposited $8,307 in an account earning 1% interest compounded annually. to the nearest cent, how much will she have in 2 years? use the formula b = p(1 + r)^t, where b is the balance (final amount), p is the principal (starting amount), r is the interest rate expressed as a decimal, and t is the time in years.

Answer

Explanation:

Step1: Identify values

$p = 8307$, $r=0.01$, $t = 2$

Step2: Substitute into formula

$B = 8307\times(1 + 0.01)^{2}$

Step3: Calculate exponent

$(1 + 0.01)^{2}=1.01^{2}=1.0201$

Step4: Calculate final amount

$B = 8307\times1.0201=8474.9707$

Answer:

$8474.97$