An amount of $31,000 is deposited in a bank that pays interest at the rate of 4%/year, compounded annually. what is the total amount on deposit at the end of 6 years, assuming there are no deposits or withdrawals during those 6 years? (round your answer to the nearest cent.)

Question

Mathematics

Pierce Horne

2 May, 05:22

An amount of $31,000 is deposited in a bank that pays interest at the rate of 4%/year, compounded annually. what is the total amount on deposit at the end of 6 years, assuming there are no deposits or withdrawals during those 6 years? (round your answer to the nearest cent.)

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Jayleen Sanders · Answer 1

You want the compound Amount, A. P is $31000; r is 0.04, and t is 6 yrs.

A = P (1+0.04) ^t becomes A = $31000 (1.04) ^6, or

A = $39224.89. Pretty good deal?