Explanation
Question 6
We are asked to find the bank balance if the account starts with $250 and an annual rate of 4%
after 2 years
To get the answer, we will use the formula:
[tex]\begin{gathered} A=P(1+r)^n \\ where \\ P=250 \\ r=4\text{\%=0.04} \\ n=2 \end{gathered}[/tex][tex]\begin{gathered} A=250(1+0.04)^2 \\ A=250(1.04)^2 \\ A=250\times1.0816 \\ A=270.4 \end{gathered}[/tex]
Therefore, the balance will be $270.4
