Question

1300 at 6% for 7 years?

Answer 1

$546

Explanation:

Use the formula:

Interest = principal(rate)(time)

I = Prt

P = 1300

r = 6%, convert to a decimal by dividing by 100 or moving the decimal two places left

t = 7

I = 1300(.06)(7)

I = 546

Answer 2

$1,954.72

Explanation:

V = P ( 1 + [ r / n ] ) ^ n * t

where:V = the value of investment at the end of the time periodP = the principal amount (the initial amount invested)r = the annual interest raten = the annual frequency of compounding (how many times a year interest is added)t = the number of years the money is invested^ means raise to the power of