if you invest $20 in a savings account tha pays 5% interest how much money will...

if you invest $20 in a savings account tha pays 5% interest how much money will you have in 4 years if you make no additional deposits

Expert Solution

	A/c balance after 4 years	PV×(1+r)^n

	Here,

A	Interest rate per annum	5%
B	Number of years	4
C	Number of compoundings per per annum	1
A÷C	Interest rate per period ( r)	5.0%
B×C	Number of periods (n)	4
	Present value (PV)	$ 20

	A/c balance after 4 years	$ 24.31
		20×(1+5%)^4

jeff jeffy answered 1 year ago

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