Alexa puts 1,000.00 into an account to use for school expenses. The account earns 4% interest, compounded annually. How much will be in the account after 6 years?

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Solution

Alexa puts 1, 000.00 into an account to use for school expenses. The account earns 4% interest, compounded annually. How much will be in the account after 6 years?

Solution

Amount : 1265.32

Solution steps

Translate the problem into an equation:

A = 1000 (1 + \frac{0.04}{1})^{1 \cdot 6}

1000 (1 + \frac{0.04}{1})^{1 \cdot 6} = 1265.31901 \dots

Round to the nearest hundredth:

1265.32

Amount : 1265.32

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