Question

How much would $200 invested at 6% interest compounded annually be
worth after 6 years? Round your answer to the nearest cent.
A(1) = P(1+5)*

Answer 1

Answer:

$283.70

Step-by-step explanation:

$a = p {(1 + \frac{r}{n} )}^{nt}$

Where:

a = worth

p = principal (original amount)

r = interest rate (decimal)

n = repetitions per annum (1 for yearly interest)

t = number of years

$a = 200 {(1 + \frac{0.06}{1} )}^{6} = \\ = 200 {(1 + 0.06)}^{6} = \\ = 200 {(1.06)}^{6} = \\ = 283.70$