There will be $2712 in Harry's account after 21 years.
Explanation:
The initial amount put into the investment account was $1200. This account has an interest rate of 6% every year. This means that for every year that money is kept in this account, the bank must pay them 6%. To do this we must calculate how much 6% of $1200 is
6% of $1000 is 0.06 * $1000 =$72.
So for every year, the interest of $72 is added into the account. To calculate total interest we multiply this interest amount and the number of years.
So after 21 years= $72 * 21 years = $1512.
So interest gained in 21 years is $1512 but this is only the interest amount. We must add the initial amount with this to find the total amount available in the account.
Total amount present= Inital amount + Amount due to interest= $1200 + $1512= $2712.
