Suppose Ravi places $8500 in an account that pays 2% interest compounded each year. Assume that no withdrawals are made from the account. How much does he make after 1 year How …

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asked Oct 1, 2021 232k views

2 Answers

Denia · Answer 1 · 2021-10-06T15:25:45+0000

This can be written as an expression, where x is the number of years.

8500(1.02)^x

Now, we plug in 1 and 2.

1 year = $8670

2 years = $8843.40