Suppose that 5500 is placed in an account that pays 17% interest coin pound each year assume that no with draws are made from the account. Find the amount in the account at the end of 2 years

Answer 1

I believe the usual compound interest formula applies here for the amount A after t years, A(t) = P (1 + r)^t, where P is starting amount and r is the rate expressed as a decimal. After 2 years at 17% annual interest compounded once per year, A(2) = 5500 (1 + 0.17)² = 7,528.95.