Answer:
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 = $470
r = 6% = 6/100 = 0.06
n = 1 because it was compounded once in a year.
Therefore, the equation used to determine the value of his bond after t years is
A = 470(1 + 0.06/1)^1 × t
A = 470(1.06)^t
