Question

Becky put $100 into in the account to use for school expenses. The account earns 11% interest, compounded annually. How much will be in the account after 6 years?

Answer 1

Answer: $187 will be in the account after 6 years.

Step-by-step explanation:

We would apply the formula for determining compound interest which is expressed as

A = P(1+r/n)^nt

Where

A = total amount in the account at the end of t years

r represents the interest rate.

n represents the periodic interval at which it was compounded.

P represents the principal or initial amount deposited

From the information given,

P = $100

r = 11% = 11/100 = 0.11

n = 1 because it was compounded once in a year.

t = 6 years

Therefore,.

A = 100(1 + 0.11/1)^1 × 6

A = 100(1 + 0.11)^6

A = 100(1.11)^6

A = $187