Question

How much money will you have if you invest $2200 at 2%/a compounding annually for 30 years?

Answer 1

$3,985.00

Explanation:

The formula for the amount accrued, A if you invest an amount P at r% compounded annually for n years is given by the formula

`A = P\left(1 + (r)/(100)\right)^n`
`A = P\left(1 + (2)/(100)\right)^(30) \\\\= P\left(1 + 0.02\right)^(30) \\\\= P\left(1 .02\right)^(30) \\\\= \; \$3,985.00`

The division by 100 is necessary to allow r% to be reduced to a decimal

So using this formula directly by substituting values gives