Answer :
Answer: $96.8
Step-by-step explanation:
Formular for Compounding annually :
A =P ( 1 + r/n) ^nt
Where p is the Principal given as $80
r is the rate given as 10% = 10/100 = 0.1
n is the number of times the principal was compounded, given as 1
t is the time, given as 2 years:
Slot the values into the formula:
A= $80 ( 1 + 0.1/1) ^ (1 × 2)
A= $80 ( 1 + 0.1) ^2
A= $80 ( 1.1) ^2
A= $80 (1.21)
A= $80 x 1.21
A= $96.8
96.8 is already rounded to the nearest cent.
The amount she have in two years is $96.8.
Given that,
Allie deposited $80 in a savings account earning 10% interest, compounded annually.
We have to determine,
How much will she have in 2 years.
According to the question,
Principal = $80,
Interest r = 10% = 0.1,
Time = 2 years
The amount she have in two years can be determined by following formula given below.
[tex]Amount = principal \ (1+rate)^{time}[/tex]
Substitute all the values in the formula,
[tex]Amount = 80\times (1+0.1)^2\\\\Amount = 80\times (1.1)^2\\\\Amount = 80\times 1.21\\\\Amount = 96.8[/tex]
Hence, The amount she have in two years is $96.8.
To know more about Exponential click the link given below.
https://brainly.com/question/2925460