Question

Find the final amount of money in an account if $ 2 ,100 is deposited at 2 % interest compounded annually and the money is left for 5 years.

Answer 1

`~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+(r)/(n)\right)^(nt) \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\$2100\\ r=rate\to 2\%\to (2)/(100)\dotfill &0.02\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{annually, thus once} \end{array}\dotfill &1\\ t=years\dotfill &5 \end{cases} \\\\\\ A = 2100\left(1+(0.02)/(1)\right)^(1\cdot 5)\implies A=2100(1.02)^5 \implies A \approx 2318.57`