Edgar opened a savings account and deposited 500.00 as principal. The account earns 10% interest, compounded annually. What is the balance after 6 years?

Solution

Solution

Amount : 885.78

Solution steps

Translate the problem into an equation:

A = 500 (1 + \frac{0.1}{1})^{1 \cdot 6}

500 (1 + \frac{0.1}{1})^{1 \cdot 6} = 885.7805

Round to the nearest hundredth:

885.78

Amount : 885.78

Popular Examples

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