Question

$3,900 at 1% compounded annually for 6 years

Answer 1

$4139.93

Explanation:

Formula for amount accrued at compound interest annually is given by

A = P( 1+ r)ⁿ

where
P = principal
r = interest rate expressed as a decimal
n = number of years

Given P = 3900, r = 1/100 = 0.01, n = 6 we get

A = 3900(1 + 0.01)⁶ = 3900(1.01)⁶ = 4139.93

So the amount accrued after 6 years = $4139.93