Question

olivia opened a savings account and deposited 200.00 as principal the account earns 8%interest compounded annually what is the balance after 2 years

Answer 1

use the formula to calculate the amount in an account after t years compounded anually

`A=P\cdot(1+r)^t`

in which

P= principal

r=rate

t= time in years

replace with the given values

`A=(200.00)\cdot(1+0.08)^2`

simplify expression and solve

`\begin{gathered} A=(200.00)\cdot(1.08)^2 \\ A=233.28 \end{gathered}`