Question

A bank has an interest rate of 2% each year. If I put $100,000 in the bank, howmuchmoneywill I have in 5 years?

Answer 1

the rate of interest is R = 2 %

the principal is P = 100000 $

the time period is, t = 5 yr

so, the amount after 5 yr will be,

`A=P(1+(R)/(100))^t`

`A=100000*(1+(2)/(100))^5`
`\begin{gathered} A=100000*((102)/(100))^5 \\ A=110408.08 \end{gathered}`

so., the answer is A = 110408.08 $