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Angel deposited $6,000 in an account that pays 6% interest compounded annually. Witch expression can be used to determine the value of his investment?

User BigFatBaby
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1 Answer

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Answer:

A = $6000{1+0.06/n}^nt

Explanation:

If angel deposited $6,000 in an account that pays 6% interest compounded annually. The expression that can be used to determine the value of his investment is expressed as shown;

A = P(1+r/n)^nt

A is the total amount of investment compounded after

P is the principal

r is the interest rate

t is the time in years

n is the number of times interest is applied each period

Given P = $6000

r = 6% = 0.06

On substituting:

A = $6000{1+0.06/n}^nt

This gives the required expression

User Abdesselam
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