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If 2000 dollars is invested in a bank account at an interest rate of 8 per cent per year,

Find the amount in the bank after 12 years if interest is compounded annually:

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sqdancefan

Answer:

  $5036.34

Step-by-step explanation:

Each year, 8% of the existing balance is added to the existing balance, effectively multiplying the amount by 1.08. If that is done for 12 years, the effective multiplier is 1.08^12 ≈ 2.51817. The the amount in the bank at the end of that time is ...

  $2000×2.51817 = $5036.34