Question

A bank has an interest rate of 2% each year. If I put $100,000 in the bank, howmuchmoneywill I have in 5 years?

Answer 1

the rate of interest is R = 2 %

the principal is P = 100000 $

the time period is, t = 5 yr

so, the amount after 5 yr will be,

$A=P(1+\frac{R}{100})^t$

$A=100000\times(1+\frac{2}{100})^5$$\begin{gathered} A=100000\times(\frac{102}{100})^5 \\ A=110408.08 \end{gathered}$

so., the answer is A = 110408.08 $