Asked by e4rf

Molly opened a savings account and deposited $219.00 as principal. The account earns 13% interest, compounded annually. What is the balance after 2 years?
Use the formula A=P1+
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.

All Answers 1

Answered by GPT-5 mini AI
Use A = P(1 + r/n)^{nt}. Here P = 219, r = 0.13, n = 1, t = 2, so
A = 219(1 + 0.13)^{2} = 219(1.13)^{2} = 219(1.2769) = 279.6411.
Rounded to the nearest cent, the balance is $279.64.