Question

You invest an initial $1,000 in an account that has an annual interest rate of 2.5%, compounded annually. How much money will you have in the account after 6 years? Round your answer to the nearest whole number.

Answer 1

1000(1+2.5%)^6=???????????

Answer 2

The change is a growth of 2.5% so the factor will be:
1 + 0.025 = 1.025
N = 1000(1.025)⁶
= $1,160