Answer to Question #281087 in Financial Math for Mich

Question

Janny opened a savings account and deposited$300.00 as principal.The account earns 6% interest, compounded annually.What is the balance after 6 years?

Answer 1

$A=P(1+\frac{r}{n})^{nt}$

Compounded annually n=1

$=\$300(1+\frac{0.06}{1})^{1×6}$

$=300(1.06)^6 =\$425.5557$

The balance after 6 years is $425.5557