Question

Jolene wants to invest $2000 into a money market account. Interest is to be 6.5% compounded annually, and she wants to take the entire amount out after 5 years to put towards the purchase of a new car. How much will she have her down payment in five years?

Answer 1

Interest = 650$

Explanation:

Given:

Invest Inv = 2000$, interest rate r = 6.5% compounded annually

and time n = 5 years

Formula for calculation is:

Int = (Inv · r · n) / 100

Int = (2000 · 6.5 · 5) / 100 = 650$

Int = 650$

God with you!!!