You deposit $2,000 in a savings account at 5.5% compounded annual interest for 5 years. Write an equation to model the situation. How much money would be in your account?
If the account starts at 2000, and you get 5.5%, then the equation is y=2000+ (x.055), x being the y of the previous solution. input the numbers five times and add them up.
You deposit $2,000 in a savings account at 5.5% compounded annual interest for 5 years. Write an equation to model the situation. How much money would be in your account?
FV=PV(1 + R)^N, Where R=Interest rate per period, N=number of periods, PV=Present value, FV=Future value.
FV=$2,000(1 + .055)^5
FV=$2,000 X 1.30696....
FV=$2,613.92
