Question

Determine the total value for the account given the principal, rate, and time.

Compound interest account

Principal: $2000

Rate: 2%

Time: 7 years

Answer 1

now, this is assuming the compounding period is annually, so

`~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+(r)/(n)\right)^(nt) \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\$2000\\ r=rate\to 2\%\to (2)/(100)\dotfill &0.02\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{annually, thus once} \end{array}\dotfill &1\\ t=years\dotfill &7 \end{cases} \\\\\\ A=2000\left(1+(0.02)/(1)\right)^(1\cdot 7)\implies A=2000(1.02)^7\implies A\approx 2297.37`