Question

Suppose that when your friend was​ born, your​ friend's parents deposited ​$9000 in an account paying 6.9​% interest compounded . What will the account balance be after 17 ​years?

Answer 1

the account balance after 17 years is $27,981.02

Explanation:

Given that

The deposited amount i.e. $9,000

The Rate of interest is 6.9%

Time period = 17 years

We need to find out the account balance after 17 years

As we know that

Future value = Present value × (1 + rate of interest)^time period

= $9,000 × (1 + 6.9%)^17

= $27,981.02

Hence, the account balance after 17 years is $27,981.02