Final answer:
Curtis will have approximately $4458.89 in his bank account at the end of 6 years after investing $4200 with an annual compound interest rate of 1%, when compounded annually.
Step-by-step explanation:
To calculate how much money Curtis will have at the end of 6 years with an initial investment of $4200 and an annual compound interest rate of 1%, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
where:
- A is the amount of money accumulated after n years, including interest.
- P is the principal amount (the initial amount of money).
- r is the annual interest rate (decimal).
- n is the number of times that interest is compounded per year.
- t is the time the money is invested or borrowed for, in years.
Since the interest is compounded annually, n will be 1. The annual interest rate r is 1%, or 0.01 in decimal form. The time t is 6 years. Plugging these values into the formula gives us:
A = 4200(1 + 0.01/1)^(1*6) = 4200(1 + 0.01)^6
Calculating this we get:
A = 4200 * 1.01^6
A = 4200 * 1.06152 (rounded to five decimal places)
A = $4458.89 (rounded to the nearest hundredth)
Therefore, at the end of 6 years, Curtis will have approximately $4458.89 in his bank account.