Answer:
Future value, A = $6,317.6
Step-by-step explanation:
Given the following data;
Principal = $2,000
Interest rate = 7%
Time = 17 years
To find the future value, we would use the compound interest formula;
[tex] A = P(1 + \frac{r}{100})^{t}[/tex]
Where;
A is the future value.
P is the principal or starting amount.
r is annual interest rate.
t is the number of years for the compound interest.
Substituting into the equation, we have;
[tex] A = 2000*(1 + \frac{7}{100})^{17}[/tex]
[tex] A = 2000*(1 + 0.07)^{17}[/tex]
[tex] A = 2000*(1.07)^{17}[/tex]
[tex] A = 2000 * 3.1588 [/tex]
Future value, A = $6,317.6
