Question

Joseph deposited $60 in an account earning 10% interest compounded annually.
To the nearest cent, how much will he 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 1

B = 60(1 + 0.10)^2 = 60(1.1)^2 = 60(1.21) = 72.60

He will have $72.60.