Question

How much would Roderick have after 6 years if he has $500 now and leaves it invested at 5.5% with annual compounding?a. $591.09b. $622.20c. $654.95d. $689.42e. $723.89

Answer 1

Answer:

Roderick will get $689.421 after 6 years

So option (d) is correct

Explanation:

We have given that Roderick invested $500 at a rate for 6 years

So principle amount P = $500

Rate of interest r = 5.5 %

Time n = 6 years

We have to find total amount which Roderick get after 6 years

We know that total amount is given by

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

So total amount $A=500(1+\frac{5.5}{100})^6= 689.421$

So Roderick will get $689.421 after 6 years

So option (d) is correct