Question

FINANCE

IF $35 000 is invested at 5% p.a. compound interest (just covering the inflation rate), what would it grow to in 2 years?

Pls show full working out ty :)

Answer 1

Answer: 38587.50

Explanation:

100% + 5% = 105% / 100 = 1.05

35000 X (1.05)^2=38587.50

If you want how much interest they gained:

38587.50-35000=3587.50