If you invest $500 at 4% interest, compounded annually, how much is in the account at the end of six years?

Question

Mathematics

Elaine Savage

1 November, 13:24

If you invest $500 at 4% interest, compounded annually, how much is in the account at the end of six years?

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Answers (1)

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Brayan · Answer 1

So, we'll find out how much interest this person will have in 6 years and then add it to the original deposit. To do this we will multiply all the factors:

500 x 0.04 x 6 = 120.

This means they'll have made $120 in interest in 6 years if they don't touch the money. We will add the 120 to the 500.

500+120 = 620

They will have a total of $620 in their account after 6 years.