Question

how much would $400 be worth after 6 years, if were invested at 2% interest compounded annually? (Use the formula below and round your answer to the nearest cent.) A(t)=P(1+(r)/(n))^(nt)

Answer 1

2% interest is the rate "r" but needs to be decimal form. r = 0.02

$400 is the principal amount P

because it's annual rate, n = 1
t = 6

A = 400(1+0.02)^(6)
A = 400(1.02)^(6)
A = 400(1.13)
A = 450.46