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3 years ago

Rachel deposited $200 into an account that earns 6% interest, compound twice a year for 10 years. A=P(1+ r n ) n

Mathematics

1 answer:

romanna [79]3 years ago

5 0

Answer:

She will have $361.22 after 10 years

Step-by-step explanation:

For the formula A = P(1 + r/n)^(nt),

r needs to be input as a decimal

n is the number of times the interest is compounded annually

t is how many years the interest compounded

P is the initial principle

A is the final amount of money in the account

For this problem...

r = 0.06 (6% as a decimal)

n = 2 (compounded twice a year)

t = 10 (the money was left in for 10 years)

P = 200 (the initial principle)

A = final amount, we need to solve for this

Plug these values into the equation and solve for A

A = P(1 + r/n)^(nt) becomes A = 200(1 + 0.06/2)^(2x10)

which simplifies to A = 200(1.03)^20

which simpifies to A = $361.22

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