Question

How much would $200 invested at 6% interest compounded annually be worth after 6 years? Round your answer to the nearest cent.

Answer 1

$A=P(1+ \frac{r}{n})^{nt}$
A=future amount
P=present amount
r=rate in decimal form
n=number of times per year to be compounded
t=time in years

so
P=200
r=0.06
n=1
t=6

evaluate to find A
$A=200(1+ \frac{0.06}{1})^{(1)(6)}$
$A=200P(1.06)^{6}$
A=283.704
round
A=$283.70