Solve 88,500(1+.02/2)^(2)(1)

$$88,500 ( 1 + \frac { .02 } { 2 } ) ^ { ( 2 ) ( 1 ) }$$

Evaluate

$$90278.85$$

Solution Steps

Expand \frac{0.02}{2} by multiplying both numerator and the denominator by 100.

$$88500\left(1+\frac{2}{200}\right)^{2\times 1}$$

Reduce the fraction \frac{2}{200} to lowest terms by extracting and canceling out 2.

$$88500\left(1+\frac{1}{100}\right)^{2\times 1}$$

Add 1 and \frac{1}{100} to get \frac{101}{100}.

$$88500\times \left(\frac{101}{100}\right)^{2\times 1}$$

Multiply 2 and 1 to get 2.

$$88500\times \left(\frac{101}{100}\right)^{2}$$

Calculate \frac{101}{100} to the power of 2 and get \frac{10201}{10000}.

$$88500\times \frac{10201}{10000}$$

Multiply 88500 and \frac{10201}{10000} to get \frac{1805577}{20}.

$$\frac{1805577}{20}$$

Factor

$$\frac{3 \cdot 59 \cdot 101 ^ {2}}{5 \cdot 2 ^ {2}} = 90278\frac{17}{20} = 90278.85$$