Answer: Total amount of money that Mark will have in 4 years is $2295
Explanation:
The initial amount deposited by Mark into the account is $2000 . This means that the principal is
P = $2000
It was compounded annually. This means that it was compounded once in a year. So
n = 1
The rate at which the principal was compounded is 3.5%. So
r = 3.5/100 = 0.035
It was compounded for a total of 4 years. So
n = 4
We will apply the compound interest formula,
A = P(1+r/n)^nt
A = total amount in the account at the end of n years.
A= 2000(1 + 0.035/1)^1×4
A= 2000(1.035)^4
A = 2000 × 1.1475
A = $2295