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

Answer:

$826.28

Step-by-step 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.