Suppose you deposit $2,000 in a savings account that pays interest at an annual rate of 4%. If no money is added or withdrawn, determine how much will be in the account after 3 years.
Heres an Example kind of like you're question. :)
Assume that you deposit $1,000 in a bank account paying 3% annual interest and leave the money there for 6 years. Use the simple interest formula to compute the future value of this account. SOLUTION: We see that P = 1,000, r = 0.03, and t = 6. Therefore, Thus, your bank account will have $1,180 at the end of 6 years. ]