kelsey has $100 in an account. the interest rate is 11% compounded annually. to the nearest cent, how much…

Explanation:

Step1: Recall compound interest formula

The formula for compound interest is $A = P(1 + r)^t$, where $A$ is the amount of money accumulated after $n$ years, including interest, $P$ is the principal amount (the initial amount of money), $r$ is the annual interest rate (in decimal form), and $t$ is the time the money is invested for in years. Here, $P = 100$, $r = 11%=0.11$, and $t = 2$.

Step2: Substitute values into the formula

Substitute $P = 100$, $r = 0.11$, and $t = 2$ into the formula $A = P(1 + r)^t$. We get $A = 100\times(1 + 0.11)^2$.

Step3: Calculate the value inside the parentheses first

First, calculate $1 + 0.11=1.11$.

Step4: Calculate the power

Then, calculate $1.11^2 = 1.11\times1.11 = 1.2321$.

Step5: Multiply by the principal

Multiply this result by the principal $P = 100$: $A=100\times1.2321 = 123.21$.

Answer:

$$123.21$