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

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Finance

if you invest $20 in a savings account tha pays 5% interest howmuch money will you have in 4 years if you make no additionaldeposits

Answer & Explanation Solved by verified expert
4.2 Ratings (868 Votes)

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

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if you invest $20 in a savings account tha pays 5% interest howmuch money will you have in 4 years if you make no additionaldeposits

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