Question

How much would $200 invested at 6% interest compounded annually be worth after 6 years? Round your answer to the nearest cent. Do not include units in your answer.

Answer 1

Amount=
`p(1+ (r)/(100) )^(n)`
Amount= 200(1+0.06
`)^(6)`
Amount=200
`(1.06)^(6)`
Amount=283.70

Answer 2

A= P(1 + r)^n
where,
A= final balance
P= initial quantity
n= number of compounding periods
r= percentage interest rate
So,
P= $200
n= 6 years
r= 6%= 0.06

=$200(1 + 0.06)^6
=$283.70