Question

if you had 2000 and it grew by 4.5% each year how much would you have in 13 years

Answer 1

To calculate how much $2,000 would grow to after 13 years with an annual growth rate of 4.5%, you can use the formula for compound interest:

\[
A = P(1 + r)^n
\]

Where:
- \( A \) is the amount of money accumulated after n years, including interest.
- \( P \) is the principal amount (the initial amount of money).
- \( r \) is the annual interest rate (decimal).
- \( n \) is the number of years the money is invested or borrowed.

Given:
- \( P = 2000 \)
- \( r = 0.045 \)
- \( n = 13 \)

Now plug in the values:

\[
A = 2000(1 + 0.045)^{13}
\]
\[
A = 2000(1.045)^{13}
\]
\[
A \approx 2000 \times 1.64531 \quad (\text{using a calculator for } (1.045)^{13})
\]
\[
A \approx 3290.61
\]

So, after 13 years, you would have approximately **$3,290.61**.