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17 October, 08:09

Suppose that $2000 is invested at a rate of 2.1% compounded annually. Assuming that no withdrawals are made find the total amount after 5 years. Do not round any intermediate computations, and round your answer to nearest cent.

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  1. 17 October, 08:28
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    Amount=investment (1+rate) ^ (time)

    Amount=2,000 * (1+0.021) ^ (5) = 2,219
  2. 17 October, 08:32
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    First you have to multiply 2000 by 5 to get 10000. Then you change 2.1% to 0.021. You then Divide 10000 by 0.021 to get 476,190.47619047. Round that to get 476,190.5.
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