You just started a retirement fund by depositing $7,000 in an account. The annual interest rate for an account with an "early withdrawal" penalty is 5.75%. How much money will you have in your account if you leave it for 2 years?

Compute the amount of the fund after the 1st year: $2142_w422_h45.png$ $1097_w398_h45.png$ $7402.50 Compute the amount of the fund after the 2nd year: Amount of fund: 7402.50 (1.0575) = 7828.14 The amount of the retirement fund after 2 years is $7,828.14 TIP: For computing the fund involving a higher number of years, such as 20 years, you cannot use this method because it will be very time-consuming. Instead, use the formula: $9696_w110_h20.png$ where A stands for the final amount, P stands for principal (or initial amount), r is the rate (as a percent), and t is time (in years). Amount of fund in 20 years: $9987_w154_h49.png$