Baldwin deposited $1,011 in a savings account earning 2% interest, compounded annually.
To the nearest cent, how much will he have in 2 years?
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A = P (1 + r / n)^n * t
A = 1,011 (1 + 0.02 / 1)^1 * 2
A =
To calculate the amount Baldwin will have in 2 years, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the future amount (what we're trying to find)
P = the principal amount (initial deposit) = $1,011
r = annual interest rate (as a decimal) = 0.02
n = number of times interest is compounded per year = 1 (compounded annually)
t = number of years = 2
Now let's plug in the values and calculate:
A = 1,011(1 + 0.02/1)^(1*2)
A = 1,011(1 + 0.02)^2
A = 1,011(1.02)^2
A = 1,011(1.0404)
A ≈ $1,054.41
Therefore, to the nearest cent, Baldwin will have approximately $1,054.41 in the savings account after 2 years.
Baldwin deposited $1,011 in a savings account earning 2% interest, compounded annually.
To the nearest cent, how much will he have in 2 years?