Question

Felix's parents opened a savings

Answer 1

The money in the Felix's account will be $6798 when he is 21.

Step-by-step explanation:

It is given that,

• The amount deposited is $2000.
• The account earns 6%  compound interest.
• It is compounded  annually for 21 years.

To find the money in Felix's account after 21 years :

The formula used here is,

⇒ $A = P(1+r/n)^{nt}$

where A is the amount after 21 years.

• P is the initial amount deposited ⇒ P = 2000
• r is the rate ⇒ r = 0.06
• n is the number of times interest is compounded per year⇒ n = 1
• t is the time period ⇒ t = 21

⇒ $2000(1+0.06/1)^{21\times 1}$

⇒ $2000(1.06)^{21}$

⇒ $2000\times3.399$

⇒ $6798$

Therefore, The money in the Felix's account will be $6798 when he is 21.