Answer:
He has $1,123.60 by the end of 2 years
Step-by-step explanation:
The equation used to find the total amount is A = P(1 + r)^n
A is the total amount (what we need to find)
P is the principal amount (It is the $1,000)
r is the rate (It is 6%, or 0.06)
n is the years the investment lasts (It is 2)
We get the equation:
A = $1,000(1 + 6%)^2, or A = 1000(1 + 0.06)^2
Simplify to get:
A = 1000(1.06)^2. Since 1.06^2 = 1.1236 it becomes:
A = 1000(1.1236). Since 1000 * 1.1236 = 1123.6
So, A = 1123.6. He gets $1,123.60
