Final answer:
The amount in the bank after 9 years with a 5% interest rate compounded annually on a $2000 investment will be $3102.66.
Step-by-step explanation:
To find the amount in the bank after 9 years with compound interest, we can use the compound interest formula:
A = P (1 + r/n)nt
Where:
- A is the amount of money accumulated after n years, including interest.
- P is the principal amount (the initial amount of money).
- r is the annual interest rate (decimal).
- n is the number of times that interest is compounded per year.
- t is the number of years the money is invested for.
Given:
- P = $2,000
- r = 5% or 0.05
- n = 1 (since the interest is compounded annually)
- t = 9 years
Now we calculate A:
A = 2000 (1 + 0.05/1)1*9
A = 2000 (1 + 0.05)9
A = 2000 (1.05)9
A = 2000 * 1.551328216
A = $3102.66
Therefore, the amount in the bank after 9 years, with interest compounded annually, will be $3102.66.