Problema Solution
suppose you deposit $300 in a new savings account paying an annual yield of 2.5%. if no deposits or withdrawals are made how much money will be made in the account at the end of 5 years?
Answer provided by our tutors
P=$300 the principal
r=0.025 or 2.5% and annual rate
n = 5 years
A = the future value
A = P (1+r)^n
A = 300(1 + 0.025)^5
A = $339.42
click here to see the step by step calculation:
there will be $339.42 in the account after 5 years or there will be 339.42 - 300 = $39.42 interest (money made).