Question

Question 1 options: Jamal deposits $1000 into a savings account on his 18th birthday. If the 2% interest is compounded yearly, how much will he have in the account on his 65th birthday? Write your answer as a decimal rounded to the hundredths place. Do not include the dollar sign as part of your answer. $

Answer 1

A=P(1+r/n)^(nt)
P=1000 r=2/100=0.02(decimal) n=1 t=47
Plug these figures into the formula:
A=1000(1+0.02/1)^(1(47))
2,536.34

Answer 2

65-18=47
2%47 = 0.94 thats the answer