Question

MEDAAAL :D

You invest $2,000 in an account that is compounded annually at an interest rate of 5%. You never withdraw money from the account. How much money will be in the account after 4 years?,

Answer 1

The answer is 2431.01. At the end of the first year, 5 percent of 2000 is taken and added on to the 2000 you started with. At the end of the second, another 5 percent of that higher number is taken and added on, and so on and so forth until you end up receiving 2431.01 in total after 4 years.