The probablitity would be 44%
To compute the value of investment in 5 years. We use compounded annually equation. And add 2000 Yearly to the compounded value
A = P * (1 + (r/n))^(n*t)
A<span> = total amount = Unknown</span>
P<span> = principal or amount of money deposited, = 2000 usd</span>
r<span> = annual interest rate = 2.25%</span>
n<span> = number of times compounded per year = 1</span>
t<span> = time in years = 5
</span>
Solution
Year1 : A1 = 2000 * (1 +(0.025/1))^(1*1) = 2045
Year2 : A2 = (2000+2045)*(1 +(0.025/1))^(1*1) = <span>4136.01
Year3 : A3 = (2000+</span>4136.01))*(1 +(0.025/1))^(1*1) = <span>6274.07
Year4 : A4 = </span>(2000+6274.07 ))*(1 +(0.025/1))^(1*1) = <span>8460.24
Year5 : A5 = </span>(2000+8460.24 ))*(1 +(0.025/1))^(1*1) = 1<span>0695.6 </span>
Answer:
A
Step-by-step explanation:
