Question

You invest $2,000 into a savings account that gets 5% interest compounded yearly. How much money will you have after 7 years? A. $2,814.20 B. $54,112.88 C. $14,713.23 D. $3,286.33

Answer 1

You will have $2,814.20 after 7 years

Explanation:

We are given that You invest $2,000 into a savings account that gets 5% interest compounded yearly.

Principal = $2000

Rate of interest = 5% =0.05

We are supposed to find How much money will you have after 7 years?

Formula :
`A = P(1+r)^t`

A= Amount

P = Principal

t =time

r = rate of interest in decimals

Substitute the values in the formula :

`A = 2000(1+0.05)^7`

A=2814.20

So, Option A is true

Hence You will have $2,814.20 after 7 years