Question
Suppose you deposit $600 in a savings account. The interest rate is 4% per year. Find the principal balance in the account after six years
Answers
Z
P = Po(1+r)^n.
Po = $600.
r = 4%/100% = 0.04 = APR expressed as a decimal.
n = 1Comp./yr * 6yrs = 6 Compounding
periods.
Plug the above values in the given Eq
and get:
P = $759.19
Po = $600.
r = 4%/100% = 0.04 = APR expressed as a decimal.
n = 1Comp./yr * 6yrs = 6 Compounding
periods.
Plug the above values in the given Eq
and get:
P = $759.19