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18 October, 17:34

Suppose that $2000 is invested at a rate of 2%, compounded annually. Assuming that no withdrawals are made, find the total amount after 5 years. Do not round any intermediate computations, and round your answer to the nearest cent.

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  1. 18 October, 18:43
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    The formula is

    A=p (1+r) ^n

    A future value?

    P present value 2000

    R interest rate 0.02

    N time 5years

    A=2,000 * (1+0.02) ^ (5)

    A=2,208.16
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