Question

Desmond opened a savings account and deposited $600.00 as principal. The account earns

6% interest, compounded annually. What is the balance after 6 years?
Use the formula A = P(1+r/n)^nt
where A is the balance (final amount), P is the principal
(starting amount), r is the interest rate expressed as a decimal, n is the number of times per
year that the interest is compounded, and t is the time in years. Round your answer to the nearest cent.

Answer 1

$826.28

Explanation:

Given:

`P = 600`

`r = 6% or 0.06`% or
`0.06`

`t = 6`

Work:

`A=Pe^(rt)`

`A=600e^(0.06*6)`

`A=600e^(0.36)`

`A=826.28`

Therefore, the balance after 6 year is 826.28.