Question

Chanelle deposits $7,500 into the bank. She does not withdraw or deposit money for 6 years. She earns 6% interest during that time. What will the balance be when she is finally able to withdraw her money?

Answer 1

Answer: The balance after 6 years will be $10638.90

Step-by-step explanation:

in year 0, she had $7,500, and the interest is 6% (or 0.06 in decimal form) per year.

Then the amount of money in the bank can be described by the equation

M(y) = $7500*(1 + 0.06)^y

Where y is the number of years that passed. This equation says that the total amount of money increases by a factor of 1.06 each year.

We know that she can withdraw after 6 years, so we have y = 6

M(6) = $7500*(0.06)^6 = $10638.90

The balance after 6 years will be $10638.90

Answer 2

Answer:

10,200 Dollars

Step-by-step explanation:

First, converting R percent to r a decimal

r = R/100 = 6%/100 = 0.06 per year.

Solving our equation:

A = 7500(1 + (0.06 × 6)) = 10200  

A = $10,200.00