If $7,800 is deposited into an account paying 6% interest compounded annually (at the end of each year), how much money is in the account after 2 years?

Answer 1

$7,800 * 0.06 = $468
$7,800 + 468 = $8,268

$8,268 * 0.06 = $496.08
$8,268 + 496.08 = ?

Answer 2

X = 7800 (1 + .06)(1 +.06)

X = future value = Current value times (1 + interest rate) to the power of how many times the interest is calculated.

This should help you calculate similar problems too.

I hope this helps. Thanks for asking.