Question

An investor 2000 the stock market investment Grows by 5% each year

Answer 1

Using the compund interest formula:

`A=P(1+(r)/(n))^(nt)`

Where:

P = Principal = 2000

r = Interest rate = 5% = 0.05

n = Number of times interest is compounded = 1

t = time = 7

so:

`\begin{gathered} A=2000(1+(0.05)/(1))^(1\cdot7) \\ A\approx2814 \end{gathered}`

Answer:

$2814