The formula to calculate the future value of an investment with compound interest is:
A = P(1 + r/n)^(n*t)
where:
A = future value
P = principal (initial investment)
r = annual interest rate (as a decimal)
n = number of times interest is compounded per year
t = time (in years)
In this case, we have:
P = $200 (initial investment)
r = 20% = 0.20
n = 1 (compounded annually)
t = 6 (6 years)
So, we can plug these values into the formula:
A = 200(1 + 0.20/1)^(1*6)
A = 200(1.20)^6
A = $766.97 (rounded to the nearest cent)
Therefore, Robert will have approximately $766.97 in his retirement account after 6 years.