Question

Henry deposited $1700 in a savings account

Answer 1

The amount that will be there in Henry's account after a period of 6 years will be $1,925.765.

What is compound interest?

Interest on interest, or compound interest, is the adding of interest to the principal sum of a loan or deposit. It's the outcome of reinvesting interest rather than paying it out so that interest is received on the principal plus previously collected interest in the next quarter.,

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

The amount that Henry put in the account is $1700, while the compound interest on that account is 2.1% annually. Also, the time for which the amount is kept in the account is 72 months which is equal to 6 years.

Now, the total amount in Henry's account after a period of 6 years will be,

$\rm Account\ Balance = \ 1700(1+0.021)^6$

                           $= \ 1700(1.021)^6\\\\= \ 1,925.765$

Hence, the amount that will be there in Henry's account after a period of 6 years will be $1,925.765.

Learn more about Compound Interest:

brainly.com/question/25857212

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