Respuesta :
Answer:
Frederick collects the an amount of $4813.24 at the age of 18 out of which $2000 was the beginning amount.
Step-by-step explanation:
We are given the following information in the question:
Amount = 2000
Interest rate = 5%
The money is compounded annually or yearly.
Time = 18 years
Compound interest =
[tex]A = P\bigg(1+\displaystyle\frac{r}{n}\bigg)^{nt}[/tex]
where P is the principal amount, r is the interest rate, t is the time in years and n is the number of compounding in a year.
Since, the money is compounded yearly we put n = 1.
Putting all the values, we get,
[tex]A = P\bigg(1+\displaystyle\frac{r}{n}\bigg)^{nt}\\\\A = 2000\bigg(1+\frac{5}{100}\bigg)^{18}\\\\A = 4813.24\\\\\text{Interest, I} = \text{Amount - Principal} = A - P\\\\I = 4813.24 - 2000 = 2813.24[/tex]
Thus, Frederick collects the an amount of $4813.24 at the age of 18 out of which $2000 was the beginning amount.
Answer:
$4813.24
Step-by-step explanation:
Five percent growth corresponds to multiplication by 1+5%=1.05. So, the amount of money Frederick will have in 18 years is 2000(1+.05)^18= $4813.24
