Question

Justin received $200 from his grandparents for his 16th birthday. He decides to open a savings account with

the money. If the savings account earns 6% interest per year, and Justin does not make any further deposits
or withdrawals, how much money will Justin have in the account after 6 years? Round to the nearest dollar.

Answer 1

Justin will have approximately $284 in his savings account after 6 years, having started with $200 at an annual interest rate of 6%.

Step-by-step explanation:

Justin received $200 from his grandparents and opened a savings account that earns 6% interest per year. To find out how much money Justin will have in the account after 6 years, we apply the formula for compound interest: Final Amount = Principal * (1 + Rate)^Time. Therefore:

Final Amount = 200 * (1 + 0.06)^6

We calculate as follows:

Final Amount = 200 * (1.06)^6

Final Amount = 200 * 1.418519

Final Amount ≈ $284 (rounded to the nearest dollar)

So after 6 years, Justin will have approximately $284 in his savings account.