Question

The formula for compound interest is

A = P (1 + r/100)t
where A is the total amount of money, P is the amount invested, r is the interest rate per compounding period, and t is the total number of years. What would be the total amount of money after 4 years if $1,000 were invested at 2% compounded annually?

Answer 1

ProvideD :

• Time ( T ) = 4 years , Principal ( P ) = $ 1000 , Rate ( R ) = 2 % pa

To FinD :

• Total amount of money ( A )

SolutioN :

• All you need to do is plug the values in the provided formula and solve for A

`\longrightarrow \tt \: a = 1000(1 + (2)/(100) )^(4)`

`\longrightarrow \tt \: a = 1082.43216`

• The total amount of money would be $ 1082.43216

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