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.
$14,713.23

B.
$2,814.20

C.
$54,112.88

D.
$3,286.33

Answer 1

Answer:B

Explanation:

$2000×1.05^7=$2814.20

Answer 2

B

Explanation:

P = $ 2000

r =5% = 0.05

t = 7 years

`Amount=P*(1+(r)/(100)})^(t)\\\\=2000*(1+0.05)^(7)\\\\=2000*(1.05)^(7)\\\\=2000*1.4071\\\\`

= $ 2814.20