SOLUTION: An investment of $2000 earns an annual interest rate of 4%.What will be the value of the investment after 5 years?

Question 122247: An investment of $2000 earns an annual interest rate of 4%.What will be the value of the investment after 5 years?
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
An investment of $2000 earns an annual interest rate of 4%.What will be the value of the investment after 5 years?
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If it is simple interest V(5) = (2000 +2000*0.04*5) = (2000)(1+0.04*5)
= #2400
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If it is compound interest V(5)= 2000(1+0.04)^5 = $2433.00
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Cheers,
Stan H.
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