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if $3,000 is invested in a bank account at an interest rate of 6 percent per year find the amount in the bank after 10 years if interest is compounded annually

User Radicand
by
6.8k points

1 Answer

4 votes

We have the following:


A(t)=P(1+r)^t

replacing:

A is the amount

P is the principal 3000

r is the interest rate (decimal), 0.06

t is the time, 10 years


\begin{gathered} A(10)=3000\cdot(1+0.06)^(10) \\ A(10)=3000\cdot(1.06)^(10) \\ A(10)=5372.54 \end{gathered}

Therefore the amount is $5372.54

User Derek Fung
by
6.7k points
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