Question

Justina opened a savings account and deposited 400.00 as principal. the account earns 14%, interest compounded annually what is the balance after 6 years?

Answer 1

The balance after 6 years can be determined as,

$\begin{gathered} A=P(1+\frac{r}{100})^t \\ =400(1+\frac{14}{100})^6 \\ =877.99 \end{gathered}$

Thus, the required balance is 877.99 USD.