Find the final amount of money in an account if $4,300 is deposited at 7% interest compounded annually and the money is left for 6 years.
The compound interest formula is
where , A - the future value of your investment . P – the principal (the amount of money you start with); r – the annual nominal interest rate before compounding; t – time, in years; and n – the number of compounding periods in each year (for example, 365 for daily, 12 for monthly, etc.).
Here in the given problem P = $4300, r = 7% i.e, , t = 6 years, n = 1
Using the above formula the final amount of money will be
Therefore the final amount of money in that account will be $6453.1405
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