Question

If $500 are deposited into an account with

4.5% interest rate, compounded annually,
what is the balance after 6 years?

Answer 1

`~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+(r)/(n)\right)^(nt) \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\$500\\ r=rate\to 4.5\%\to (4.5)/(100)\dotfill &0.045\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{annually, thus once} \end{array}\dotfill &1\\ t=years\dotfill &6 \end{cases} \\\\\\ A = 500\left(1+(0.045)/(1)\right)^(1\cdot 6) \implies A = 500( 1.045)^(6)\implies A \approx 651.13`