Question

$18,000 at 9% compounded annually for 6 years.

Answer 1

Given:

Initial Amount = $18000

Rate = 9%

Time = 6

Sol:

`A=P(1+(r)/(n))^(nt)`

Where,

`\begin{gathered} A=\text{ Final amount} \\ P=\text{Initial principal } \\ r=\text{Interest rate} \\ n=\text{ number of time interest} \\ t=\text{time} \end{gathered}`
`\begin{gathered} r=9\% \\ =(9)/(100)=0.09 \\ n=1 \end{gathered}`
`\begin{gathered} A=P(1+(r)/(n))^(nt) \\ A=18000(1+(0.09)/(1))^(1*6) \\ A=18000(1.09)^6 \\ A=30187.802 \end{gathered}`

After 6 year value is 30187.802