Final answer:
To find the balance in the account after 10 years at an annual interest rate of 6%, you can use the formula for compound interest.
Step-by-step explanation:
To find the balance in the account after 10 years at an annual interest rate of 6%, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
- A is the final balance
- P is the principal amount (initial investment)
- r is the annual interest rate (as a decimal)
- n is the number of times interest is compounded per year
- t is the number of years
Plugging in the given values:
- P = $1000
- r = 0.06 (6% as a decimal)
- n = 1 (interest compounded annually)
- t = 10
We can now calculate the final balance:
A = $1000(1 + 0.06/1)^(1*10) = $1790.85