Answer: 2,699.72
Explanation:
To find the total amount after 10 years, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A is the total amount
P is the principal amount (initial investment)
r is the annual interest rate (as a decimal)
n is the number of times the interest is compounded per year
t is the number of years
In this case:
P = $2000
r = 3.2% = 0.032 (decimal form)
n = 1 (compounded annually)
t = 10 years
Plugging in these values, we get:
A = 2000(1 + 0.032/1)^(1*10)
Calculating inside the parentheses first:
A = 2000(1 + 0.032)^10
Using a calculator or a computer program, we find:
A ≈ 2000(1.032)^10 ≈ 2000(1.3498588076) ≈ $2,699.72
Therefore, the total amount after 10 years, rounded to the nearest cent, is $2,699.72.