Question

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?

Answer 1

A=2000(1+.05)^4
A=2000(1.05)^4
A= $2,431.01
After 4 years there will be $2,431.01 in the account.