Question 1195149


{{{A = P(1 + r/n)^(nt)}}}


given:
{{{P=1000}}}
{{{t=2}}} years
{{{R=5}}}%
{{{n=1}}} 

First, convert rate {{{R}}} as a percent to {{{r}}} as a decimal
{{{r = R/100}}}
{{{r = 5/100}}}
{{{r = 0.05}}} rate per year,

Then solve the equation for {{{A}}}

{{{A = P(1 + r/n)^(nt)
{{{A = 1000.00(1 + 0.05/1)(1*2)}}}
{{{A = 1000.00(1 + 0.05)(2)}}}
{{{A = 1102.50}}}

after two years,  her balance will be {{{ 1102.50}}}