How much would $200 invested at 6% interest compounded annually be worth after 5 years? Round your answer to the nearest cent. A

Question

JulijaS [17]

3 years ago

10

How much would $200 invested at 6% interest compounded annually be worth after 5 years? Round your answer to the nearest cent. A

. $269.97 B. $260.00 C. $212.29 D. $267.65

Mathematics

1 answer:

Liula [17] · Answer 1 · 2022-01-15T23:13:50+03:00

Liula [17]3 years ago

8 0

Exponential growth, which acts just like a geometric sequence equation, is of the form:

f=ir^t, f=final amount, i=initial amount, r=common ratio (or "rate"), t=times rate is applied, in this case:

f=200(1.06^t) so

f(5)=200(1.06^5)

f(5)≈$267.65 (to nearest cent)