Question

john lee's savings account has a balance of $1509.After 9 years, what will the amount of interest be at 6% compounded annually? rounded to the nearest dollar.

Answer 1

Answer: $2549

Explanation:

A = P(1 + r)ˣ ; where P is Principal, r is rate, and x is time

Given:

• P = 1509
• r = 6% = 0.06
• x = 9

A = 1509(1 + 0.06)⁹

= 1509(1.06)⁹

= 1509(1.6895)

= 2549.42