Question

An investment of $2500 is put into a bank that has an annual rate of 6% compounded

Answer 1

Answer:

$8017.84

Step-by-step explanation:

Because it is compounded annually, you have to use the formula

A= P(1+r)^t

(A is the future balance after t years, r is the % rate as a decimal, P is the starting amount -- the principal.)

So,

A = 2500(1 + 0.06)^20  (First, add inside the parentheses)

A = 2500(1.06)^20 (Then, do the exponent and the multiplication with a calculator)

A = 8017.84