Question

How much would $200 invested at 6% interest compounded annually be

worth after 6 years? Round your answer to the nearest cent.
A(t) = P(1+
O
A. $286.67
O
B. $283.70
O
c. $272.00
O
D. $212.30

Answer 1

$283.7

Explanation:

The formula of compound interest is given as

`A = P(1 + (r)/(100 * n) )^(tn)`

where, P is the invested principal amount.

A is the amount the sum finally grows up to.

t is the number of years the principal is invested for.

r = the % annual compound interest rate.

and n is the number of times the principal is compounded in each year.

Now, in our case P = $200, r = 6%, t = 6 years and n = 1

So,
`A = 200(1 + (6)/(100) )^(6) = 283.7` Dollars (Answer)