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Find the final amount of money in an account if $4,300 is deposited at 7% interest...

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.

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Answer #1

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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