Question

1) $17,000 invested at 3%, compounded annually; 6 years Function: Balance:

Answer 1

Answer:

$20298.90 (to the nearest cent)

Step-by-step explanation:

1) Convert your percentage of interest into a decimal. In your example, 3% would be equal to 0.03.

2) Add 1 to the answer from the previous step. In your case, 0.03 + 1 = 1.03.

3) Raise the answer from the previous step to the power of the amount of years. For example, yours would be 1.03^6, or roughly 1.15.

4) Multiply the original investment by the answer from the previous step.

I hope this helps!