Question

URGENT-- A principal of $3,600 is invested at 6.75% interest, compounded annually. How much will the investment be worth after 6 years? Round your answer to the nearest dollar.

Answer 1

$5327

Explanation:

6.75%=0.0675

Initial amount: $3600

After 1 year:

A1=3600(1+0.0675)

After 2 years:

A2=A1(1+0.067)=3600(1+0.0675)²

.....

After 6 years

A6=3600(1+0.0675)⁶=3600×1.0675⁶

A6=$5327.332

Rounded to the nearest dollar: $5327