If you put $125 into an account that paid 1.25 percent interest how much money to the nearest penny,would you have in the account in two years?
A)$129.73
B)$128.14
C)$127.15
D)$125.13

Question

Quizplus · Accepted Answer

The interest is compounded annually, so the formula to calculate the amount after two years is A = P(1 + r)^t, where P is the principal amount ($125), r is the interest rate (0.0125), and t is the time in years (2). Plugging in the values: A = 125(1 + 0.0125)^2 = 125(1.0125)^2 = 128.14.

If You Put $125 into an Account That Paid 1