if 2000 was deposited into a savings account when you were born and that savings

Algebra
Tutor: None Selected Time limit: 1 Day

if 2000 was deposited into a savings account when you were born and that savings account earns 5.0% each year how much money will be account when you turn 18

Oct 14th, 2015

Hello!

Each year the previous amount is multiplied by 1+5% = 1+0.05 = 1.05.
After one year will be 2000*1.05 = 2000*(1.05)^1, after two 2000*(1.05)^2 and after 18

2000*(1.05)^18 = 2000*2.40662 = 4813.24 (approx).

Please ask if something is unclear.
Oct 14th, 2015

Did you know? You can earn $20 for every friend you invite to Studypool!
Click here to
Refer a Friend
...
Oct 14th, 2015
...
Oct 14th, 2015
Mar 29th, 2017
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer