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If you deposit $1000 in a bank account that pays 12% interest compounded annually, how much would be in your account after 6 years?
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If you deposit $1000 in a bank account that pays 12% interest compounded annually, how much would be in your account after 6 years?

User Eaglebearer
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1 Answer

3 votes

Answer:

The amount in the account after 6 years is $ 1,973.82

Step-by-step explanation:

The future value at year 6 can be computed using the future value formula below:

FV=PV*(1+r)^n

PV is the amount deposited which is $1000

r is the interest rate of 12%

n is the number of years which is 6

FV=$1000*(1+12%)^6

FV=$1000*1.973822685

FV=$ 1,973.82

User Jijoy
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4.9k points
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