Question

Suppose that $6500 is placed in an account that pays 17% interest compounded each year. Assume that no withdrawals are made from the account.

Answer 1

Answer: $7,605

Explanation:

At the end of 1 years, the amount in the account will be:

= Principal * (1 + rate)^ no. of periods

= 6,500 * (1 + 17%)

= $7,605