Sara opens a bank account with $200. The account accrues 2% interest compounded annually.
How much money, to the nearest cent, will she have in her account at the end of 3 years? (Use the formula [tex]A = P(1 + \frac{r}{n})^{nt}[/tex], where [tex]P[/tex] is the initial amount of money, [tex]r[/tex] is the interest rate, [tex]t[/tex] is the number of years, and [tex]n[/tex] is the number of times the interest is compounded per year.)
Answer (2)
A=P(1+rn)nt A=200(1+.02)^3 A=200(1.02)^3 A=200(1.061208) A= 212.2416 which u round to 212.24
Sara will have approximately $212.24 in her account after 3 years at an interest rate of 2%, compounded annually. This is calculated using the compound interest formula. By plugging in her initial amount and interest rate, we find her final balance.
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