How much would $200 invested at 6% interest compounded a 6% interest compounded annually be worth after 5 years, round to the nearest cent

Question

Mathematics

Esther Walker

6 December, 15:28

How much would $200 invested at 6% interest compounded a 6% interest compounded annually be worth after 5 years, round to the nearest cent

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Answers (1)

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Fernando Figueroa · Answer 1

A = P (1 + r) ^n

where,

A = final balance

P = initial quantity

n = number of compounding periods

r = percentage interest rate

So,

P = $200

n = 6 years

r = 6% = 0.06

=$200 (1 + 0.06) ^6

=$283.70