Kevin wants to know how much money he will have in his account if he earns 5% interest compounded yearly for four years on a deposit of $2000?

1 Answer
EZ as pi
Oct 25, 2016

#A = $2431.01#

Explanation:

To calculate the value of an amount of money invested with compound interest, use the formula:

#A = P(1 +R/100)^n" or " A = P(1+r)^n#

Where #R# = rate of interest as a percent.
and #r# = rate of interest as a decimal.

#A = 2000(1+0.05)^4#

#A = 2000(1.05)^4" "#you have to use a calculator here.

#A = $2431.01#

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