Question

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.

Answer 1

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.

Answer 2

Amount=investment (1+rate)^(time)
Amount=2,000×(1+0.021)^(5)=2,219