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hodyreva [135]
4 years ago
14

How much would $200 invested at 6% interest compounded annually be worth after 5 years? Round your answer to the nearest cent. D

o not include units in your answer.
Mathematics
1 answer:
BartSMP [9]4 years ago
4 0
The answer is 267.65

A = P(1 + r/n)ⁿˣ
A - the future value
P - the principal
r - the annual rate
n - the number of compoundings per year
x - the period of time

We know:
A = ?
P = $200
r = 6% = 6%/100% = 0.06
n = 1 (annualy means once per year)
x = 5

A = P(1 + r/n)ⁿˣ
A = 200 * (1 + 0.06/1)¹*⁵
A = 200 * (1 + 0.06)⁵
A = 200 * (1.06)⁵
A = 267.65
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