Asked by Confuzzled
You invested $1000 in a savings account in 6th grade. The account pays 5% annual interest. How much money will be in the account after 6 years? I understand how to set the equation up, but I'm not sure how to get the final answer. This is a question from my textbook that shows all the steps and the answer, but I can't figure out how they got a final answer of $1340.10. Please Help Me Understand This!!
Answers
Answered by
Reiny
They are using compound interest.
amount = 1000(1.05)^6
= 1340.0956..
= $ 1340.10
amount = 1000(1.05)^6
= 1340.0956..
= $ 1340.10
There are no AI answers yet. The ability to request AI answers is coming soon!
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.