Question

adele opened a savings account with an initial deposit of $2000 and will not make any additional deposits or withdrawals. The account earns 5% interest compounded annually. What is the total amount the Adele will have in her account at the end of 3 years?

Answer 1

Answer:

Adele will have $2,315.25 at the end of 3 years

Step-by-step explanation:

Parameters:

Principal, P = $2000

Rate, r = 5%

Number of times compounded, n = 1

Time, t = 3 years

The compound formula is given by:

`A=P(1+(r)/(n))^(nt)`

Applying the given parameters

`\begin{gathered} A=2000(1+(0.05)/(1))^(1*3) \\ \\ =2000(1.05)^3 \\ =2315.25 \end{gathered}`

Adele will have $2,315.25 at the end of 3 years