Question

Jackie deposits $2,050 into an account that pays 6.8% interest compounded annually. How much will be in the account (to the nearest dollar) after 6 years?

Answer 1

$2091 (exact answer is $2090.80)

Explanation:

2050 × 6.8% = 6.8

So, interest will add an extra $6.80 to his account

6.8 × 6 = 40.8

So, after 6 years, interest will make him an additional $40.80.

Add 40.80 to his original amount of money.

2050 + 40.8 = 2090.80

Round it up to the nearest dollar.

$2091