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adele opened a savings account with an initial deposit of $2000 and will not make any additional deposits or withdrawals. The account earns 5% interest compounded annually. What is the total amount the Adele will have in her account at the end of 3 years?

Respuesta :

Answer:

Adele will have $2,315.25 at the end of 3 years

Explanation:

Parameters:

Principal, P = $2000

Rate, r = 5%

Number of times compounded, n = 1

Time, t = 3 years

The compound formula is given by:

[tex]A=P(1+\frac{r}{n})^{nt}[/tex]

Applying the given parameters

[tex]\begin{gathered} A=2000(1+\frac{0.05}{1})^{1\times3} \\ \\ =2000(1.05)^3 \\ =2315.25 \end{gathered}[/tex]

Adele will have $2,315.25 at the end of 3 years

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