Question

How much would $400 invest at 5% interest compounded annually be worth after 6 years? Compound interest formula: A(t) = P(1 + i)t 1. Write the numbers. Principal = , interest rate= , time = 2. Find the total amount of money that the investor would have after 6 years. Show your work using the equation editor.

Answer 1

Answer: 1. Principal = $400, interest rate= 5% = 0.05 , time = 6 years

2. The total amount of money that the investor would have after 6 years will be $ 536.04 .

Step-by-step explanation:

Given : Compound interest formula: $A(t) = P(1 + i)^t -1$

, where P= Principal  amount

i= Rate of interest ( in decimal )

t= time

As per given : Principal = $400, interest rate= 5% = 0.05 , time = 6 years

i.e. P = 400 , i=0.05 , t= 6

Put these values in compound interest formula , we will get

$A(6)=400(1+0.05)^6=400(1.05)^6\\\\=400(1.34009564062)\\\\=536.038256248\approx536.04$

Hence, the total amount of money that the investor would have after 6 years will be $ 536.04 .

Answer 2

The total amount of money that the investor would have after 6 years is $936.04.

Given the following data:

• Principal = $400

• Interest = 5% = 0.05

• Time = 6 years

To find the total amount of money that the investor would have after 6 years:

Mathematically, compound interest is given by the formula:

$A = P(1 + i)^{t}$

Where;

• A is the future value.

• P is the principal or starting amount.

• i is the annual interest rate.

• t is the number of years for the compound interest.

Substituting the given parameters into the formula, we have;

$A = 400(1 + 0.05)^{6}\\\\A = 400(1.05)^{6}\\\\A = 400(1.3401)$

Future value, A = $536.04

Now, we can find the total amount of money that the investor would have after 6 years:

$Total \;amount = A + 400\\\\Total \;amount = 536.04 + 400$

Total amount = $936.04

Read more: https://brainly.com/question/22339845