Question

How much would $200 invested at 6% interest compounded annually be

worth after 6 years? Round your answer to the nearest cent.
A(1) = P(1+5)*

Answer 1

$283.70

Explanation:

`a = p {(1 + (r)/(n) )}^(nt)`

Where:

a = worth

p = principal (original amount)

r = interest rate (decimal)

n = repetitions per annum (1 for yearly interest)

t = number of years

`a = 200 {(1 + (0.06)/(1) )}^(6) = \\ = 200 {(1 + 0.06)}^(6) = \\ = 200 {(1.06)}^(6) = \\ = 283.70`