An agency deposits 2,000 in a compound interest account at 5% interest. How much money should the agency have after three years if it does not withdraw any money from the account?

Solution

An agency deposits 2, 000 in a compound interest account at 5% interest. How much money should the agency have after three years if it does not withdraw any money from the account?

Solution

Amount : 2315.25

Solution steps

Translate the problem into an equation:

A = 2000 (1 + \frac{0.05}{1})^{1 \cdot 3}

2000 (1 + \frac{0.05}{1})^{1 \cdot 3} = 2315.25

Amount : 2315.25

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