Ashley opened a savings account and deposited 500.00 as principal. The account earns 5% interest, compounded annually. How much interest will she earn after 6 years?

Solution

Solution

Interest : 170.05

Solution steps

Translate the problem into an equation:

670.04782 \dots = 500 + I

Solve for

I, 670.04782 \dots = 500 + I : I = 170.05

Interest : 170.05

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