Question

How much would $200 invested at 6% interest compounded annually be worth after 6 years? Round your answer to the nearest cent. A.$272.00B.$212.30C.$286.67D.$283.70

Answer 1

The amount, A, over a period of time, t, is;

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

Given;

`\begin{gathered} P=200,r=6\text{ \%}=0.06,t=6,n=1 \\ \\ A(6)=200(1+0.06)^6 \\ \\ A(6)=283.70 \end{gathered}`

CORRECT OPTION: (D) $283.70