Question

Adriana opened a savings account and deposited $300.00 as principal. The account earns 6% interest, compounded annually. What is the balance after 9 years? Use the formula A=P1+ r n nt, where A is the balance (final amount), P is the principal (starting amount), r is the interest rate expressed as a decimal, n is the number of times per year that the interest is compounded, and t is the time in years. Round your answer to the nearest cent.

Answer 1

$506.7

Explanation:

Step one:

given

Principal = $300

rate= 6% = 0.06

time = 9 years

Required

The final amount A

Step two:

The compound interest formula is

`A= P(1+r)^t\\\\A= P(1+0.06)^9\\\\A= 300(1+0.06)^9\\\\A= 300(1.06)^9\\\\A= 300*1.689\\\\A=506.7`