Levi opened a savings account and deposited 700.00 as principal. The account earns 10% interest, compounded annually. What is the balance after 6 years?

Solution

Solution

Amount : 1240.09

Solution steps

Translate the problem into an equation:

A = 700 (1 + \frac{0.1}{1})^{1 \cdot 6}

700 (1 + \frac{0.1}{1})^{1 \cdot 6} = 1240.0927

Round to the nearest hundredth:

1240.09

Amount : 1240.09

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