Question

an investor 2000 the stock market investment Grows by 5% each year

Answer 1

Using the compund interest formula:

$A=P(1+\frac{r}{n})^{nt}$

Where:

P = Principal = 2000

r = Interest rate = 5% = 0.05

n = Number of times interest is compounded = 1

t = time = 7

so:

$\begin{gathered} A=2000(1+\frac{0.05}{1})^{1\cdot7} \\ A\approx2814 \end{gathered}$

Answer:

$2814