Suppose that 6500 is placed in an account that pays 17% interest compounded each year.Assume that no withdrawals are made from the account. find the amount in the account at the end of 1 year.

Solution

Solution

Amount : 7605

Solution steps

Translate the problem into an equation:

A = 6500 (1 + \frac{0.17}{1})^{1 \cdot 1}

6500 (1 + \frac{0.17}{1})^{1 \cdot 1} = 7605

Amount : 7605

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