Actually calculate the final amount on $1000 compounded annually at 6% per year for 4 years.

Question

Actually calculate the final amount on $1000 compounded annually at 6% per year for 4 years.

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Arya 3 months 2022-02-15T14:38:13+00:00 1 Answer 0 views 0

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    2022-02-15T14:39:48+00:00

    Answer: the final amount is $1262.5

    Step-by-step explanation:

    Initial amount in the account is $1000 This means that the principal is

    P = 1000

    It was compounded annually. This means that it was compounded once in a year. So

    n = 1

    The rate at which the principal was compounded is 6%. So

    r = 6/100 = 0.06

    It was compounded for 4 years. So

    t = 4

    The formula for compound interest is

    A = P(1+r/n)^nt

    A = total amount in the account at the end of t years. Therefore

    A = 1000 (1 + 0.06/1)^1×4

    A = 1000(1.06)^4 = $1262.5

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45:7+7-4:2-5:5*4+35:2 =? ( )