word problem
posted by christopher on .
You deposit $1000 at 2% for 20 years, compounded annually. What's the future value? use this interest 0.02/365

If the interest is compounded annually, why would you divide .02 by 365 ?
That would make it " compounded daily".
According to your first sentence ....
amount = 1000(1.02)^20 = $1485.95