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9 November, 18:12

You worked hard over the summer and earned an extra $2,000. You decided to deposit that amount into your savings account. This savings account will earn 2.0% interest annually and no other deposits will be made. What is the future value of your deposit after 6 years?

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Answers (2)
  1. 9 November, 18:47
    0
    The future value of deposit will be $2252.324

    Steps by step with Explanation:

    Given in the question is the interest rate that is 2%

    Earning $2000

    Calculation,

    2/100 x 2000 = 40

    Deposit after 1 year: 2040

    2% of 2040,

    2/100 x 2040 = 40.8

    Deposit after 2 years: 2080.8

    2% of 2080.8 = 41.616

    Deposit after 3 years = 2122.416

    2% of 2122.416 = 42.44832

    Deposit after 4 years = 2164.86432

    2% of 2164.86432 = 43.2972864

    Deposit after 5 years: 2208.161606

    2% of 2208.161606 = 44.16323213

    Deposit after 6 years: 2252.324838

    Therefore, after 6 years the future value of deposit will be $2252.324
  2. 9 November, 20:52
    0
    If we are taking of compound interest after the first year $2,040. In the second year is $2,080.08. In the third year is $2,122.42. In the fourth year $2,164.86. In the fifth year $2,208.16. In the sixth year the future value deposit will be $2,252.32.
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