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📅 May 17, 2026 👤 scraface

May 17, 2026

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📌 A bank offers an annual interest rate of 5% compounded annually. If you invest $1000, calculate the amount after 3 years.

📌 Amount after 1 year: \(1000 \times 1.05 = 1050\)

📌 Amount after 2 years: \(1050 \times 1.05 = 1102.50\)

📌 Amount after 3 years: \(1102.50 \times 1.05 = 1157.625\)

📌 A loan of $2000 is taken at an annual interest rate of 6% compounded monthly. Calculate the total amount to be paid after 2 years.

📌 Monthly interest rate: \(0.06/12 = 0.005\)

📌 Number of months: \(2 \times 12 = 24\)

📌 Total amount: \(2000 \times (1 + 0.005)^{24} = 2000 \times 1.12716 = 2254.32\)

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