Question

hi I need on this. $6000 invested at 5.5% interest, compounded annually. how how would i have in 6years?

Answer 1

In this case, we'll have to carry out several steps to find the solution.

Step 01:

Data:

principal = $6000

rate (interest) = 5.5%

time = 6 years

Step 02:

compound interest:

n = annually

n = 1

r = 5.5 % = 5.5 / 100 = 0.055

A = amount

`A\text{ = P \lparen1 + r/n\rparen}^(nt)`
`A\text{ = 6000 * \lparen1 + }(0.055)/(1))\placeholder{⬚}^(1*6)`
`A\text{ = 6000 * \lparen1.3877\rparen = 8273.06}`

The answer is:

$8273.06