Answer: 716.66 dollars
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Step-by-step explanation:
We'll apply this formula
A = P*e^(r*t)
where,
- A = account balance after t years
- P = initial deposit, aka principal
- e = special constant roughly equal to 2.718 but it goes on forever without a pattern; it's better to let the calculator handle this value rather than type the decimal digits in.
- r = annual interest rate in decimal form
- t = number of years
In this case, we have
Again we won't type "2.718..." for 'e', and we'll just type it into the calculator as shown below. That way the calculator can handle the digits instead.
So...
A = P*e^(r*t)
A = 500*e^(0.06*6)
A = 716.66470728026
A = 716.66 dollars is the final answer