Question

A credit union client deposits $2,700 in an account earning 6% interest, compounded annually. What will the balance of the account be at the end of 31 years?

Enter the answer in dollars and cents, and round to the nearest cent, if needed. Do not include the dollar sign. For example, if the answer is $0.61, only the number 0.61 should be entered.

Balance ≈ $________ after 31 years.

Answer 1

Balance ≈ $7,722 after 31 years

Explanation:

1. multiply your deposit by your interest
2. Multiply by how long
3. Add your base deposit to the interest

Ex.

2, 700(0.06) =$162.

162(31)= $5,022.

5,022 + 2,700 = $7,722.