33. Anne invested \( \$ 1000 \) in an account with a \( 1.3 \% \) annual interest rate. She made no deposits or withdrawals on the account for 2 years. If interest was compounded annually, which equation represents the balance in the account after the 2 years?. A. \( A=1000(1-0.013)^{2} \) B. \( A=1000(1+0.013)^{2} \) C. \( A=1000(1-1.3)^{2} \) D. \( A=1000(1+1.3)^{2} \)

To find the correct equation representing the balance in Anne's account after 2 years with compounded interest, we use the formula for compound interest: \[ A = P(1 + r)^t \] Here, \( P \) is the principal amount (\$1000), \( r \) is the annual interest rate (1.3% or 0.013), and \( t \) is the number of years (2). So, the correct equation is: **B. \( A = 1000(1 + 0.013)^{2} \)** This formula takes into account the growth of the investment due to interest accumulation each year. For those looking to maximize their investment, understanding how compounding works can be a game changer! For instance, if Anne continued to leave her money in the account for more years, she would benefit even more from the magic of compounding. Time is truly an investor's best friend! If you're curious about how different interest rates would affect her investment over time, you might want to play around with some scenarios using online calculators. They can help visualize how small differences in interest rates lead to big changes in your outcome over the long run. Happy investing!