Nicole is saving up money to buy a car. Nicole puts 6,000.00 into an account which earns 5% interest, compounded annually. How much will she have in the account after 9 years?

Solution

Nicole is saving up money to buy a car. Nicole puts 6, 000.00 into an account which earns 5% interest, compounded annually. How much will she have in the account after 9 years?

Solution

Amount : 9307.97

Solution steps

Translate the problem into an equation:

A = 6000 (1 + \frac{0.05}{1})^{1 \cdot 9}

6000 (1 + \frac{0.05}{1})^{1 \cdot 9} = 9307.96929 \dots

Round to the nearest hundredth:

9307.97

Amount : 9307.97

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