Question

You invest $2,000 in an account that has an annual interest rate of 3.2%, com
pounded annually. How much money will be in the account after 12 years?

Answer 1

I think it's 2,768 but I'm not sure..

Answer 2

Let say you have A dollars in the account. After one year you will have A*103.2/100 dollars. Now your money is A*103.2/100. After one year later you will have (A*103.2/100)*(103.2/100) dollars. So your money will be A*(103.2/100)^n after n years.

So answer is 2000*(103.2/100)^12= 2918.68 dollars.

Answer 3

Ohh. That makes much more sense. Thanks!

Answer 4

You're welcome