If you deposit $2,000 in a bank account that pays 9% interest annually, how much would be in your account after 14 years? Round your answer to the nearest cent.
evaluate
2000(1.09)^14
To calculate how much would be in your account after 14 years with a 9% annual interest rate, you can use the formula for compound interest. The formula is:
A = P(1 + r/n)^(n*t)
Where:
A is the final amount in the account
P is the principal amount (initial deposit)
r is the annual interest rate (as a decimal)
n is the number of times that interest is compounded per year
t is the number of years
In this case, the principal amount (P) is $2,000, the annual interest rate (r) is 9% or 0.09, the number of times compounded per year (n) is not given, and the number of years (t) is 14.
Using the provided numbers, we assume that the interest is compounded annually (n = 1).
Now, substitute the values into the formula:
A = 2000(1 + 0.09/1)^(1*14)
A = 2000(1 + 0.09)^14
A = 2000(1.09)^14
Calculating this, you would find that there would be approximately $6,223.44 in your account after 14 years with a 9% annual interest rate.