Question

John makes a deposit of $12,000 in a bank at 6% Compound Interest annually, for 7 years. a) At the end of 7 years, how much John will have in his bank account

Answer 1

$18,043.56

Step-by-step explanation:

The formula for calculating future value:

FV = P (1 + r) n

FV = Future value

P = Present value

R = interest rate

N = number of years

12,000 x (1.06)^7 = $18,043.56