Calculate the compound interest.

How much would $400

invested at 5% interest

compounded annually be

worth after 6 years?

Formulas:

Compound Interest: A (t) = P (1+r/n) ^nt

Continuously Compound Interest: A (t) = P•e^rt

You use the first formula. You plug in the values to get A=400 (1 + (0.05/1)) ^6. You should get approximately $536.04. I used 0.05 because you need to change the percent to a decimal, and 1 for n because it is compounded annually, meaning once a year.