Question

find the future value of $2,000 deposited at 6% for 3 years if the account Pay simple interest in the account pays interest compounded annually

Answer 1

Simple interest – interest is paid only on the principal; Compound interest – interest is ... If interest is compounded annually, it pays .1 $1000 = $100 the first year, ... Amount of an annuity - S (future value) of n payments of R dollars for n ... $2000 at the end of each year in an account earning 10% compounded annually.