Compound interest
$2000 is invested at a compound interest rate of per year.
Calculate the value of the investment after years.
- 1
Use a single multiplier. Growing by means multiplying by each year.
- 2
Substitute the values.
- 3
Evaluate.
Answer
$2315.25
Examiner tip
Use the power directly rather than working year by year — it is faster and avoids rounding errors accumulating. Note the multiplier is , not .