Question

At the end of every year Mr. E deposits $2,000 into a savings account that earns interest at a 6% compounded annual rate. What will his account balance be after 9 years have passed

Answer 1

Answer:

A = $3378.95

Explanation:

Given data:

Deposit amount = $2000

Compound annual rate 6%

Duration of deposition = 9 yr

amount after 9 year can be computed by using following formula$A = P(1+ \frac{r}{n})^{nt}$

plugging all value in above formula

where n = 1,

P = 2000

r = 0.06

t = 9 year

interest is compounded annually

$A = 2000 ( 1 + \frac{0.06}{1}^{1\times 9}$

A = $3378.95