Question

Hi can someone please help me with this i will give you five stars!!

Answer 1

Explanation:

Let's look at what we know. We know that...

P=2000

r=0.04 (Change 4% to a decimal)

t=7 (25 years minus 18 years equals 7)

n=1

Since we are compounding each year, we need to use this equation:
`P(1+(r)/(n) )^(nt)`

Now just plug the numbers in: (Answer to #1:)
`2000(1+(0.04)/(1) )^((1*7))`

This equals 2631.86

When we round, this equals to $2,632. (Answer to #2).