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11 October, 11:28

Suppose Ravi places $8500 in an account that pays 2% interest compounded each year.

Assume that no withdrawals are made from the account.

How much does he make after 1 year

How much after 2

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Answers (2)
  1. 11 October, 13:30
    0
    1 years: $8670

    2 years:$8840
  2. 11 October, 15:03
    0
    This can be written as an expression, where x is the number of years.

    8500 (1.02) ^x

    Now, we plug in 1 and 2.

    1 year = $8670

    2 years = $8843.40
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