If I deposit $2,000 into an account that owns 4% simple annual interest how much money will I have in 5 years

Answer 1

The simplest way to see how much money you will have after earning 4% interest is to multiply by 1.04. If you are getting this for 5 years in a row, you would be multplying by 1.04 again and again (5 times), which is like multiplying by 1.04⁵.

So, you end up with 2000(1.04)⁵= $2,433.31