The compounded interest formula is :
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]where A = future amount
P = Present amount
r = interest rate
n = number of compounding
t = time in years
From the problem,
P = $1300
r = 6% or 0.06
n = 1 (compounded annually)
t = 2 years
Using the formula above,
[tex]\begin{gathered} A=1300(1+\frac{0.06}{1})^{1(2)} \\ A=1460.68 \end{gathered}[/tex]The answer is $1460.68
