Question

If you deposit $1,000 into a savings account that makes 2% yearly interest, how much money willbe in the account in 20 years? Round answer to 2 decimal places.Hint : use y = a(1 + r)^x

Answer 1

In this problem we can use the Hint, that is a equation that models this problem, where y is the total money that you have in your account, nd x is the number of years that have passed and a in the initial money you deposit, and r are the interest so:

$\begin{gathered} Y=1000(1+0.02)^2 \\ Y=1040.40 \end{gathered}$

SO in 20 years you will have $1040.40 dollars