Suppose you deposit $2,000 in a savings account that pays interest at an annual rate of 6%. If no money is added or withdrawn from the account, answer the following questions.
a. How much will be in the account after 4 years?
b. How much will be in the account after 16 years?
c. How many years will it take for the account to contain $2,500?
d. How many years will it take for the account to contain $3,000?
a. After 4 years, the account will contain $2,248.48.
b. After 16 years, the account will contain $3,093.60.
c. It will take 8.5 years for the account to contain $2,500.
d. It will take 13.5 years for the account to contain $3,000.