Question

You deposit $400 in an account earning 2% interest compounded annually. How much will you have in the account in 20 years?

Answer 1

Approximately $594.38

Explanation:

Use the formula: y = a(1 + r)^t
a is the initial amount
r is the percent of interest in decimal form
t is the time in years
y is the money after t years

Substitute the values given in the problem into the equation:
400(1+0.02)^20
Use a calculator or solve manually
Around 594.38