Answer to Question #151637 in Financial Math for cheechee

Question

how much will sams investment of $2000.00 grow to after 5 years if she earns 6% compound interest

Answer 1

The formula for compound interest is

$$A=P(1+r/n)^{nt}$$

Given

$P=\$2000.00$

$r=0.06$

$n=1(annual)$

$t=5\ years$

$$A=\$2000(1+0.06/1)^{1(5)}=\$2676.45$$