andy has $100 in an account. the interest rate is 6% compounded annually. to the nearest cent, how much will…

andy has $100 in an account. the interest rate is 6% 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.

andy has $100 in an account. the interest rate is 6% 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

Explanation:

Step1: Identify values

$p = 100$, $r=0.06$, $t = 2$

Step2: Substitute into formula

$B=100\times(1 + 0.06)^{2}$

Step3: Calculate exponent

$(1 + 0.06)^{2}=1.06^{2}=1.1236$

Step4: Calculate final amount

$B = 100\times1.1236=112.36$

Answer:

$112.36$