Answer:
$88.20
Step-by-step explanation:
We will use compound interest formula to answer this problem.
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
A= Amount after t years.
P= Principal amount.
r= Interest rate (decimal)
n=Period of compounding
t= Time.
Upon substituting our given values in above formula we will get,
[tex]A=80(1+\frac{0.05}{1})^{1\times 2}[/tex]
[tex]A=80(1+0.05)^{2}[/tex]
[tex]A=80(1.05)^{2}[/tex]
[tex]A=80\times 1.1025[/tex]
[tex]A=88.2[/tex]
Therefore, Mandy will earn $88.20 in 2 years.