Kyle has $700 in a savings account. The interest rate is 14%, compounded annually.

To the nearest cent, how much will he have in 2 years?

To calculate how much Kyle will have in 2 years with a 14% annual interest rate, compounded annually, we can use the compound interest formula:

\[
A = P(1 + \frac{r}{n})^{nt}
\]

Where:
- $ A $ is the amount of money accumulated after $ t $ years, including interest.
- $ P $ is the principal amount ($700).
- $ r $ is the annual interest rate (14% or 0.14).
- $ n $ is the number of times the interest is compounded per year (since it's compounded annually, $ n = 1 $).
- $ t $ is the time the money is invested for, in years (2 years in this case).

Substituting the values into the formula:

\[
A = 700(1 + \frac{0.14}{1})^{1 \times 2}
\]

Let me calculate this.Kyle will have approximately **$909.72** in his savings account after 2 years, to the nearest cent.

Would you like more details or have any questions about the calculation?

Here are 5 related questions to deepen your understanding:
1. What would happen if the interest were compounded monthly instead of annually?
2. How much interest does Kyle earn in the second year compared to the first?
3. What would the final amount be if Kyle invested the same amount for 3 years at 14% interest?
4. How much would Kyle need to invest to reach $1000 in 2 years at the same interest rate?
5. What would the total be if the interest rate were reduced to 10% instead of 14%?

**Tip:** The more frequently interest is compounded, the greater the amount of accumulated interest.

Kyle has $700 in a savings account. The interest rate is 14%, compounded annually. To the nearest cent, how much will he have in 2 years?

Discover how to calculate compound interest for Kyle's savings account with an initial investment of $700 at a 14% annual interest rate. Learn how the compound interest formula works and how Kyle's balance will grow to $909.72 in 2 years. This example is ideal for students in Grades 9-12.

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