Dana puts 864.00 into an account to use for school expenses. The account earns 6% interest, compounded annually. How much will be in the account after 6 years?

Solution

Solution

Amount : 1225.6

Solution steps

Translate the problem into an equation:

A = 864 (1 + \frac{0.06}{1})^{1 \cdot 6}

864 (1 + \frac{0.06}{1})^{1 \cdot 6} = 1225.60051 \dots

Round to the nearest hundredth:

1225.6

Amount : 1225.6

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