A deposit of 2000 dollars grows by 5% each year for 3 years. Enter the final amount in dollars.
Correct answer
2315.25
Explanation
Apply the 1.05 multiplier three times: 2000 × 1.05 × 1.05 × 1.05 = 2315.25 dollars. Adding three amounts of 5% of the original deposit gives 2300 dollars and misses growth on earlier increases.