Compound interest formula: If $1000 is invested at 5% annually compounded, what is the value after 2 years? A $1100 B $1102.50 C $1050 D $1105 ✓ Correct Answer: Option B A = P(1+r)^t = 1000(1.05)² = 1000(1.1025) = $1102.50. Practice PCAT Exam Prep Quizzes → Browse All Questions Study Flashcards