George deposited $2,000 in his bank account, which offers 5 percent compound interest calculated annually. what would be the principal amount available in george’s account at the end of two years?

This can be solve by using the formula

F = p ( 1 + r)^n

Where f is the future worth of the money

P is the initial amount of money

 R is the annual interest rate

N is the numner of years

 F =2000 ( 1 + 0.05)^2

F = $2,205

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