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Home > MC2 > Chapter 11 > Lesson 11.2.4 > Problem 11-74

11-74.

Add the interest he earns to his initial principal to find the total amount he would have after 5 years.

I = ($2000)(.1)(5 years)
I = $1000

Total = $2000 + $1000 = $3000

A = 2000(1 + 0.8)5

(1.08)5 = 1.469

A = $2000 (1.469) = $2938.66

Which account has more money after 5 years?