You invest $2,000 in an account that is compounded annually at an interest rate of 5%. You never withdraw money from the account. How much money will be in the account after 4 years?
Answers
Answered by
7
Compound interest is calculated by the given formula
Principle× (1+r/100)^n
Therefore after substitution we get
2000(1+5/100)^4 = $24310
We are asked to find the amount after the compound interest, which will be obtained by subtracting the principle
We get,
24310-2000= $22310
If this helps please mark me the brainliest
Principle× (1+r/100)^n
Therefore after substitution we get
2000(1+5/100)^4 = $24310
We are asked to find the amount after the compound interest, which will be obtained by subtracting the principle
We get,
24310-2000= $22310
If this helps please mark me the brainliest
Answered by
2
2000(1+5/100)^4
2000×(21/20)^4
=2430
@ns
2000×(21/20)^4
=2430
@ns
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