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Setler79 [48]
3 years ago
11

Jose now has $500. How much would he have after 6 years if he leaves it invested at 5.5% with annual compounding?a. $591.09b. $6

22.20c. $654.95d. $689.42e. $723.89
Business
1 answer:
lys-0071 [83]3 years ago
6 0

Answer:

D. 689. 42

Explanation:

The equation to calculate the total including the initial principal plus interest is A=P(1+r/n)^{nt}, where the following is true:

A= Total (principal plus interest)

P= Principal ($500)

R= Rate (5.5% in decimals = 0.055)

n= Compound (Annually -- 1 year)

t= Time in years (6 years)

A=500(1+(0.055/1))^{1X6}

A=500(1+0.055)^{6}

A=500(1.055)^{6}

A=500(1.37884)

A=689.42

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