Answer:
[tex]\boxed {\boxed {\sf \$ 1803.80}}}[/tex]
Step-by-step explanation:
We are using the formula I=PRT and calculating simple interest.
[tex]I=PRT[/tex]
I is the interest, P is the principal or starting amount, R is the interest rate as a decimal, and T is the time in years.
We know that there is $1555.00 at 8% for 2 years. First, convert the interest rate to a decimal. Divide the rate by 100 or move the decimal place 2 spots to the left.
- 8/100 = 0.08
- 8. --> 0.8 --> 0.08
Now we know all the values:
Substitute the values into the formula.
[tex]I= (1555.00)(0.08)(2)[/tex]
Multiply.
[tex]I=124.4(2)[/tex]
[tex]I=248.8[/tex]
The account earned $248.80 in interest, but the question asks for the total amount in the account. We must add the interest to the starting amount.
[tex]1555.00 +248.80[/tex]
[tex]1803.8[/tex]
After 2 years, the savings account had $1803.80
