Question

Find the total amount in the compound interest account.$6,330 is compounded annually at a rate of 10% for 2 years. How much money will be in the account at the end of 2 years?

Answer 1

We have

$\begin{gathered} A=P\mleft(1+\frac{R}{100}\mright)^t \\ \\ \end{gathered}$

Where t = time in years, R = rate in %. We have P = 6330, R = 10 and t = 2. Then

$\begin{gathered} A=6330\mleft(1+\frac{10}{100}\mright)^2 \\ \\ A=6330\cdot(1.1)^2 \\ \\ A=6330\cdot1.21^{} \\ \\ A=7659.3 \end{gathered}$

That's how much money will be in the account, $7,659.3