Question

Principal: $1750 Interest Rate: 2% Time: 20 years Account balance Interest

Answer 1

The account balance after 20 years can be determined as,

`\begin{gathered} A=P(1+(r)/(100))^t \\ =1750(1+(2)/(100))^(20) \\ =2600.40 \end{gathered}`

The interest can be determined as,

`\begin{gathered} I=A-P \\ =2600.40-1750 \\ =850.40 \end{gathered}`

Thus, the interest is $850.40 and the account balance is $2600.40.