Dina invests $600 for 5 years at a rate of 2% per year compound interest.
1 answer:
Answer:
The value of this investment at the end of the 5 years is of $662.5.
Step-by-step explanation:
Compound interest:
The compound interest formula is given by:
Where A(t) is the amount of money after t years, P is the principal(the initial sum of money), r is the interest rate(as a decimal value), n is the number of times that interest is compounded per year and t is the time in years for which the money is invested or borrowed.
Dina invests $600 for 5 years at a rate of 2% per year compound interest.
This means that . Thus
Calculate the value of this investment at the end of the 5 years.
This is A(5). So
The value of this investment at the end of the 5 years is of $662.5.
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