Solve the problem.
-Luis invests $1000 into an account earning interest at a rate of 4% compounded annually. Find the amount in the account at the end of 2 years.
A) $1081.60
B) $1040.00
C) $1124.86
D) $81.60

Question

Quizplus · Accepted Answer

The amount in the account after 2 years can be calculated using the formula for compound interest: A = P(1 + r)^n, where A is the amount, P is the principal amount ($1000), r is the annual interest rate (4% or 0.04), and n is the number of years (2). Plugging in the values: A = 1000(1 + 0.04)^2 = 1000(1.04)^2 = $1081.60.

Solve the Problem. -Luis Invests $1000 into an Account Earning Interest at a Interest