Kevin wants to know how much money he will have in his account if he earns 5 interest compounded yearly for four years on a deposit of 2000.00.?

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1097042

2026-03-30 21:40

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To calculate the amount in Kevin's account after four years with a 5% interest rate compounded yearly, we can use the formula for compound interest: ( A = P(1 + r)^n ), where ( A ) is the amount, ( P ) is the principal amount ($2000), ( r ) is the annual interest rate (0.05), and ( n ) is the number of years (4). Plugging in the values, we get ( A = 2000(1 + 0.05)^4 ), which simplifies to ( A = 2000(1.215506) ), resulting in approximately $2431.01. Therefore, Kevin will have about $2431.01 in his account after four years.

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