Question

or Dominic opened a savings account and deposited $600.00 as principal. The account earns 13% interest, compounded annually. What is the balance after 5 years?

Answer 1

initial investment of $600,000.00, plus an amount at an annualized interest rate of 13% will be worth $1,105,461.11 after 5 years if the interest is calculated once a year.

13% interest = coefficient 1+(13/100)= 1.13

we put 1.13^5 because the duration of the investment is 5 years,

600 000 +1,13^5=$1 105 461.108

What is the balance after 5 years?

$1 105 461.108