Question

If $10,000 is invested at 6% annual interest compounded yearly, what is the account balance after 4 years, assuming no additional deposits or withdrawals are made?

Answer 1

Answer:

a = $12,600

Step-by-step explanation:

Formula for Compound interest :

$a = p{(1 + \frac{r}{100} )}^{n}$

a = Amount

p = Initial Principal

r = Interest rate per annum

n = number of years

$a \: = 10000(1 + 0.06)^{4}$

a = 10,000 * (1.26)

a = $12,600