Answer:
a) The amount of money that will be in the account after 2 years = $11444.4
b) The interest earned = $444.4
Explanation:
The principal, P = $11000
The interest rate, r = 2% = 2/100
r = 0.02
Number of times interest is compounded per year, n = 1
Time, t = 2 years
The amount after 2 years is calculated below
[tex]\begin{gathered} A=P(1+\frac{r}{n})^{nt} \\ \\ A=11000(1+\frac{0.02}{1})^{1(2)} \\ \\ A=11000(1.02)^2 \\ \\ A=11444.4 \end{gathered}[/tex]
The amount of money that will be in the account after 2 years = $11444.4
The interest = Amount - Principal
Interest = $11444.4 - $11000
Interest = $444.4
The interest earned = $444.4
