Respuesta :

abidemiokin

Answer:

$884.749

Step-by-step explanation:

Amount is expressed as [tex]A = P(1+\frac{r}{n} )^{nt} \\[/tex]

A is the amount compounded after 2 years

P is the amount deposited (Principal)

r = rate (in %)

t = time taken (in years)

n = 1 year (since interest was compounded annually)

Given P = $818, r = 4%, t = 2 years

On substituting;

[tex]A = 818(1+0.04)^{2} \\A = 818(1.04)^{2}\\A = 818(1.0816)\\A = 884.749[/tex]

Therefore, balance on the deposit of $818, earning 4% interest compounded annually for 2 years is $884.749

The balance on a deposit of $818, earning 4% interest compounded annually for 2 years is $884.749.and this can be determined by using the compound interest formula.

Given :

The balance on a deposit of $818, earning 4% interest compounded annually for 2 years.

The formula of compound interest can be used to determine the final balance. The formula of compound interest is given by:

[tex]\rm A= P(1+\dfrac{r}{n})^{nt}[/tex]      ---- (1)

where A is the final amount, P is the initial amount, n is the number of times interest applied,  and t is the number of time periods elapsed.

Now, substitute the value of known terms in equation (1).

[tex]\rm A = 818(1+\dfrac{0.04}{1})^{1\times 2}[/tex]

[tex]\rm A = 818(1.04)^2[/tex]

A = $884.749

So, the balance on a deposit of $818, earning 4% interest compounded annually for 2 years is $884.749.

For more information, refer to the link given below:

https://brainly.com/question/22621039

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