137k views
5 votes
jack is invested in $2500 in a mutual account that pays 4% annually.how much will his mutual stocks be worth in 5 years

User Carey
by
7.7k points

2 Answers

4 votes
year 1: $2500×1.04=$2,600
year 2: $2600×1.04=$2,704
year 3: $2704×1.04=$2,812.16
year 4: $2812×1.04=$2,924.65
year 5: $2924.65×1.04=$3,041.64

His mutual stocks will be worth $3,041.64 in 5 years.
User Taher Chhabrawala
by
7.9k points
3 votes

Well since he left it for 5 years we do the following steps ->

5 years and 4% every year that's 20% in total.

0.20 or 0.2 * 2500 = 500 is 20% of the 2500.

Now add 2500 + 500 = 3000

Your answer is 3000. Hope I'm right

User John Resig
by
7.5k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.