Question

You deposit $2,000 in a bank account paying 4% annual interest and leave the money

there for 5 years. Use the simple interest formula to compute the future value of this account.

Answer 1

Answer: $2400

Explanation:

SI = Prt / 100

SI = 2000 x .04 x 5

SI = 400

FInal Amount = 2000 + 400 = $2400