Question

How much would $200 invested at 6% interest compounded annually be
worth after 6 years? Round your answer to the nearest cent.
Alt) = 0(1+4)*

Answer 1

Answer:

A= P(1 + r)^n  

where,

A= final balance

P= initial quantity

n= number of compounding periods

r= percentage interest rate

So,

P= $200

n= 6 years

r= 6%= 0.06

=$200(1 + 0.06)^6

=$283.70