Question

Katie has 6500 in her savings account. If it earns 6% interest every month how much savings does she have in her account in over half a year

Answer 1

Step-by-step explanation:

First, you recognize the algorithm for the equation: A=P(1+r)^n. This is the algorithm for interest. P is the amount of initial money (in this case, 6500), r is the interest rate (6%, or 0.06), and n is the number of times it is being compounded. Since half a year is given to me, 6 months is what I will be using, or just 6.

Next, plug in the numbers. The equation is now: A=6500(1+0.06)^6.

Now time to solve. First add what's in the parenthesis, and put it to the power of 6, for 6 months. Then multiply that amount to the initial dollar amount; 6500. This will leave you with 9,220.37.