Imagine that two years ago you inherited $20,000 and put it into an account paying a fixed 8 percent annual interest rate.How much money do you have in your account now?
A)$22,880.00
B)$23,200.00
C)$23,232.00
D)$23,328.00

Question

Quizplus · Accepted Answer

To calculate the amount in the account after two years with an 8% annual interest rate, use the formula for compound interest: A = P(1 + r)^n, where P is the principal amount ($20,000), r is the interest rate (0.08), and n is the number of years (2). A = 20000(1 + 0.08)^2 = 20000(1.1664) = $23,328.00.

Imagine That Two Years Ago You Inherited $20,000 and Put