Question

You deposit 300 in an account earning 6% interest compounded annually. How much will you have in the account in 20 years?

Answer 1

$962.10

Explanation:

`a = p {(1 + (r)/(100) )}^(n)`

a = amount

p = principal

r = interest rate

n = number of years

a = 300[1+6/100]^20

= 300(1.06)^20

= 300(3.207)(4s.f)

= 962.10

Answer 2

P = 300 $; r = 0.06; t = 20; n = 1

A = P ( 1 + r/n)^n*t

= 300 ( 1 + 0.06) ²⁰

= 300 ( 1.06) ²⁰

= 962.14