Final answer:
To find out the future value of the investment after 20 years without withdrawals using the compound interest formula, plug in 20 for n in the equation A = 2000(1.07)^n. The future value comes out to be approximately $7739.40, showcasing the power of compound interest over time.
Step-by-step explanation:
The student's question involves determining the future value of an investment using the compound interest formula. Given the equation A = 2000(1.07)^n, where A represents the accumulated amount, 1.07 indicates an annual interest rate of 7%, and n is the number of years, we can find out how much money would be in the bank account after 20 years. To do so, we substitute n with 20.
Therefore, the calculation is A = 2000(1.07)^20. Computing this, A ≈ 2000(3.8697) ≈ $7739.40. So, if you don't make any withdrawals, you will have approximately $7739.40 in your bank account in 20 years. This demonstrates the benefit of starting to save early and allowing your investments to grow through compound interest.