Question

Pramod invests $2,000 for 5 years at 5% interest. Calculate the amount Pramod receives at the end of the investment period.

Answer 1

A = P * (1 + r)^t

Using this formula, we can calculate the amount Pramod receives at the end of the investment period:

P = $2,000

r = 0.05 (5% expressed as a decimal)

t = 5 years

A = $2,000 * (1 + 0.05)^5

A = $2,000 * 1.27628

A = $2,552.56

Therefore, Pramod receives $2,552.56 at the end of the investment period.