If 10,000 is invested at 6% annual interest compounded yearly, what is the account balance after 4 years, assuming no additional deposits or withdrawals are made?

Solution

If 10, 000 is invested at 6% annual interest compounded yearly, what is the account balance after 4 years, assuming no additional deposits or withdrawals are made?

Solution

Amount : 12624.77

Solution steps

Translate the problem into an equation:

A = 10000 (1 + \frac{0.06}{1})^{1 \cdot 4}

10000 (1 + \frac{0.06}{1})^{1 \cdot 4} = 12624.7696

Round to the nearest hundredth:

12624.77

Amount : 12624.77

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