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Emmett deposited $90 in an account earning 5% 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.

Respuesta :

The value of the account after two years given the amount deposited and the rate of interest would be  $99.23.

What is compound interest?

Compound interest is when both the amount deposited and the interest already accrued increase in value when interest is paid.

What is the value of the account?

The formula that can be used to determine value of the account is:

B=p(1+r)^t

where:

  • B =  balance
  • p =  principal
  • r = the interest rate
  • t = time

$90(1.05)^2 = $99.23

To learn more about compound interest, please check: https://brainly.com/question/26367706

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