Question

Remi deposits $2,000 into a savings account at her bank. If the interest rate is 3.25 percent, how much money will she have in her account after 5 years?

Answer 1

Answer:

Given the deposited amount in the savings account = $2000

The saving account earns the interest rate = 3.25%

We are required to find the future value after = 5 years

Step-by-step explanation:

Since we have the present value of the saving amount, the rate of interest that it earns, and the time period for which the savings account earns the interest rate.

Use the below formula to find the future value of the money.

The amount after 5 years = Present value ( 1 + r)^n

Present value = $2000

r = 3.25%

n= 5

Now insert all the values in the formula.

The amount after 5 years = $2000(1 + 3.25%)^5

The amount after 5 years = $2346.82