Question

You deposit $200 in an account that pays 5% interest every year. How much money will you have after 6 years? Round to the nearest dollar

Answer 1

Answer:

$\ 268$

Step-by-step explanation:

Compound Interest: If P is initial amount, A is final amount, r is interest rate and n is number of years.

$A=P(1+\frac{r}{100})^n$

$Here\ P=\ 200,\ r=5\%\ and\ n=6\ years\\\\We\ have\ to\ find\ out\ A\\\\A=200(1+\frac{5}{100})^6\\\\A=200(1+0.05)^6\\\\A=200(1.05)^6\\\\A=200\times 1.340095641\\\\A=268.02\\\\A\approx \ 268$