Answer to Question #233734 in Civil and Environmental Engineering for Alan Enrico V Tuib

Question

Suppose that $2000 is deposited in an account that earns 6% interest. How much is in the account
a. after 5 years?
b. after 10 years?
c. after 20 years?
d. after 50 years?
e. after 100 years?

Answer 1

$a)\\ A= P(1+r)^n= 2000(1+0.06)^5 =\$ 2676.45\\ b)\\ A= P(1+r)^n= 2000(1+0.06)^{10} =\$ 3581.69\\ c)\\ A= P(1+r)^n= 2000(1+0.06)^{20} =\$ 6414.27\\ d)\\ A= P(1+r)^n= 2000(1+0.06)^{50} =\$ 36840.30\\ e)\\ A= P(1+r)^n= 2000(1+0.06)^{100} =\$ 678604.16\\$