Bruno was given $2000 when he turned 3 years old. His parents invested it at a 2% interest rate compounded annually. No deposits or withdrawals were made. Which expression can be used to determine how much money Bruno had in the account when he turned 16?

Respuesta :

Answer:

$2,587 (approx)

Explanation:

Given:

Principal(P) = $2,000

Interest rate compounded annually(R) = 2% = 0.02

Total number of year Invested(n) = 16 year - 3 year = 13 year

Amount when he turned 16 = ?

Computation of amount:

[tex]Amount = P[(1+r)^n]\\\\= 2,000[(1+0.02)^{13}]\\\\= 2,000[(1.02)^{13}]\\\\= 2,000 \times1.2936\\\\= 2,587.2132[/tex]

Therefore , Bruno receive $2,587 (approx)

The money that should be required when he turned 16 is  $2,587 (approx).

Calculation of the money:

Since the Principal(P) = $2,000

Rate of interest on annual basis (R) = 2% = 0.02

Number of year Invested(n) = 16 year - 3 year = 13 year

So, the amount is

= P(1 + r)^n

= $2,000(1+0.02)^13

= $2,000(1.2936)

= $2,587

hence, The money that should be required when he turned 16 is  $2,587 (approx).

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