Basic College Mathematics (10th Edition)

Published by Pearson
ISBN 10: 0134467795
ISBN 13: 978-0-13446-779-5

Chapter 6 - Percent - 6.8 Compound Interest - 6.8 Exercises - Page 453: 6

Answer

Year 1: 2040 dollars Year 2: 2080.80 dollars Year 3: 2122.42 dollars

Work Step by Step

Year 1: $2000\times0.02=40$ Total: $2000+40=2040$ Year 2: $2040\times0.02=40.8$ Total: $2040+40.8=2080.8$ Year 3: $2080.8\times0.02=41.616$ Total: $2080.8+41.616=2122.416\approx2122.42$
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