Question
If you put $202 in a savings account that pays 6% compounded annually for nine years what is the amount of money you will have at the end of the nine years?
Answers
GPT 3.5
The formula for compound interest is: A = P(1 + r/n)^(nt)
Where:
A = the future value of the investment
P = the principal investment amount (initial amount deposited)
r = the annual interest rate (decimal)
n = the number of times that interest is compounded per year
t = the number of years the money is invested for
Given:
P = $202
r = 6% = 0.06
n = 1 (compounded annually)
t = 9 years
Plugging in the values:
A = $202(1 + 0.06/1)^(1*9)
A = $202(1.06)^9
A = $202 * 1.677100
A = $338.
Therefore, at the end of nine years, you will have approximately $338 in the savings account.
Where:
A = the future value of the investment
P = the principal investment amount (initial amount deposited)
r = the annual interest rate (decimal)
n = the number of times that interest is compounded per year
t = the number of years the money is invested for
Given:
P = $202
r = 6% = 0.06
n = 1 (compounded annually)
t = 9 years
Plugging in the values:
A = $202(1 + 0.06/1)^(1*9)
A = $202(1.06)^9
A = $202 * 1.677100
A = $338.
Therefore, at the end of nine years, you will have approximately $338 in the savings account.