Question

Bill invested $4000 at 6%

compounded annually. Find the
accumulated amount at the end of
12 years.

Answer 1

• $ 8048.79

Explanation:

• P = $4000
• t = 12 years
• r = 6% = 0.06

Formula:

• A = P(1 + r)^t

The total amount:

• A = 4000*(1 + 0.06)^12 = 8048.79

Answer 2

We have to find the,

Accumulated amount at end of 12 years.

The formula we use,

→ A = P(1+r)^t

It is given that,

→ P = $4000

→ t = 12 years

Then r will be,

→ 6%

→ 6/100

→ 0.06

Then the total amount is,

→ P(1+r)^t

→ 4000 × (1 + 0.06)^12

→ 8048.79

Thus, $ 8048.79 is the amount.