lozanonoe52
Answered

Welcome to Westonci.ca, the Q&A platform where your questions are met with detailed answers from experienced experts. Join our platform to connect with experts ready to provide precise answers to your questions in various areas. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.

Felix has $100 in an account that earns 5% interest compounded annually.
To the nearest cent, how much interest will he earn in 2 years?

Sagot :

Qvantum

Answer:

$110.49

Step-by-step explanation:

100(1+0.05/12)^12(2)

The $100 increases by 5%, or 1.05, every year, and to find the interest after two years, we use the formula above. His value after the first year raises to $105, and then again by 5%, which is 110.49.

Thank you for choosing our service. We're dedicated to providing the best answers for all your questions. Visit us again. We appreciate your time. Please revisit us for more reliable answers to any questions you may have. We're here to help at Westonci.ca. Keep visiting for the best answers to your questions.