Question

A principal of $2000 is invested at 7% interest, compounded annually. How much will the investment be worth after 10 years? Use the calculator provided and round your answer to the nearest dollar.

Answer 1

$4,027.51

Explanation:

Use the formula P*e^(r * t)

P = principal amount

e = the constant e

r = rate

t = time, in years

2,000 * e ^ (0.07 * 10)

2,000 * e ^ (0.7) ≈ 4,027.51