Question

Jamarcus starts with $1,200 in a college savings account. His account earns interest at a rate of 1.8% compounded annually. How much money is in the account after 6 years?

Answer 1

FV= $1,335.57

Explanation:

Giving the following information:

Initial Investment (PV)= $1,200

Interest rate= 1.8% compounded annually

Number of periods= 6

To calculate the future value, we need to use the following formula:

FV= PV*(1+i)^n

FV= 1,200*(1.018^6)

FV= $1,335.57