Question

How much would $200 invested at 6% interest compounded annually be worth after 6 years? Round your answer to the nearest cent.

Answer 1

`A=P(1+ (r)/(n))^(nt)`
A=future amount
P=present amount
r=rate in decimal form
n=number of times per year to be compounded
t=time in years

so
P=200
r=0.06
n=1
t=6

evaluate to find A

`A=200(1+ (0.06)/(1))^((1)(6))`

`A=200P(1.06)^(6)`
A=283.704
round
A=$283.70