Alexa puts 1,000.00 into an account to use for school expenses. The account earns 4% interest, compounded annually. How much will be in the account after 6 years?

Solution

Alexa puts 1, 000.00 into an account to use for school expenses. The account earns 4% interest, compounded annually. How much will be in the account after 6 years?

Solution

Amount : 1265.32

Solution steps

Translate the problem into an equation:

A = 1000 (1 + \frac{0.04}{1})^{1 \cdot 6}

1000 (1 + \frac{0.04}{1})^{1 \cdot 6} = 1265.31901 \dots

Round to the nearest hundredth:

1265.32

Amount : 1265.32

Popular Examples

simplify 3-3/5 mïxed number the quotient of a number and-6 is at most-8 In a sale, normal prices are reduced by 10%. Jay bought a pair of shoes in the sale for £54. What was the original price of the shoes?The radius of a circle is 7 ft. Find its circumference in terms of pipi.Preston and Julie deposit 6,301.00 into a savings account which earns 4% interest compounded annually. They want to use the money in the account to go on a trip in 3 years. How much will they be able to spend?