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

User Jack Collins
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1 Answer

8 votes
8 votes

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 $

User QuirkyBit
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