Question

Find the ending

balance:
$30,000 for 5.5 years
at 6% annual
compound interest

Answer 1

The ending balance after 5.5 years at an annual 6% compound interest rate would be $41,223.30, calculated using the compound interest formula.

Step-by-step explanation:

To calculate the ending balance with compound interest, you can use the formula:

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

Where:
A = the future value of the investment/loan, including interest
P = the principal investment amount ($30,000 in this case)
r = the annual interest rate (decimal)
n = the number of times that interest is compounded per year
t = the number of years the money is invested or borrowed for

Assuming the interest is compounded annually (n=1), let's calculate it:

A = $30,000(1 + 0.06/1)
`^{(1*5.5)`
A = $30,000(1.06)
`^{5.5`
A = $30,000(1.37411)
A = $41,223.30

Therefore, the ending balance after 5.5 years at an annual 6% compound interest rate would be $41,223.30.

Answer 2

step by step explaination:

ending balance=$30000

30000*5.5

165000÷6=27,500

compound interest =27,500