Question

find the amount of money in the bank account given the following conditions: initial deposit= $5000, annual rate= 3%, time= 2 years

Answer 1

By getting interest on top of the previous interest because of the 2 years and this will be added to the initial deposit, you get the following:

(5000)(1.03)^2 = (5000)(1.0609) = $5304.50