202k views
3 votes
Answer the question below Bonnie puts $100.00 into an account to use for school expenses. The account earns 6% interest, compounded annually. How much will be in the account after 6 years? ​

1 Answer

5 votes

Answer:

Step-by-step explanation:

To calculate the future value of the account after 6 years of earning interest, we can use the formula:

FV = P * (1 + r/n)^(n*t)

Where:

P = the principal amount (the initial deposit)

r = the annual interest rate (as a decimal)

n = the number of times the interest is compounded per year

t = the number of years

In this case, P = $100.00, r = 6% = 0.06, n = 1 (compounded annually), and t = 6 years. Plugging these values into the formula, we get:

FV = $100.00 * (1 + 0.06/1)^(1*6)

FV = $100.00 * (1.06)^6

FV = $133.82

Therefore, the amount in the account after 6 years would be $133.82.

User Fede
by
8.0k points