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Compound Interest, SMB-001 MC

Resilia opens a bank account and deposits $2000 into it. Interest is paid at 4% per annum, compounding annually.

Assuming no further deposits or withdrawals are made, what will be the balance in the account at the end of two years?

  1. $2160.00
  2. $2163.20
  3. $2346.24
  4. $3920.00
Show Answers Only

`=> B`

Show Worked Solution
`FV` `= PV(1 + r)^n`
  `= 2000(1 + 0.04)^2`
  `= $2163.20`

 
`=> B`

Filed Under: Compound Interest Tagged With: num-title-ct-coreb, smc-4334-10-Find FV

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