Question

Hi can someone please help me with this i will give you five stars!!

Answer 1

Step-by-step explanation:

Let's look at what we know. We know that...

P=2000

r=0.04 (Change 4% to a decimal)

t=7 (25 years minus 18 years equals 7)

n=1

Since we are compounding each year, we need to use this equation: $P(1+\frac{r}{n} )^{nt}$

Now just plug the numbers in: (Answer to #1:) $2000(1+\frac{0.04}{1} )^{(1*7)}$

This equals 2631.86

When we round, this equals to $2,632. (Answer to #2).