Question

Suppose you deposit $2,000 in a savings account that pays interest at an annual rate of 6%. if no money is added or withdrawn from the account, what will the amount be after 4 years?

Answer 1

Total = Principal * (1 + rate)^years
Total = 2,000 * (1.06)^4
Total = 2,000 * 1.26247696
Total = 2,524.95