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10 January, 10:55

How much would $200 invested at 6% interest compounded a 6% interest compounded annually be worth after 5 years, round to the nearest cent

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  1. 10 January, 11:01
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    A = P (1 + r) ^n

    where,

    A = final balance

    P = initial quantity

    n = number of compounding periods

    r = percentage interest rate

    So,

    P = $200

    n = 6 years

    r = 6% = 0.06

    =$200 (1 + 0.06) ^6

    =$283.70
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