Question

tom invested $3460 into a bank for 6 years. His money was compounded annually at a 8.5% interest rate. What is his total amount of money now?

Answer 1

$5644.88

Explanation:

Formula for Compound interest: P(1 + r/n)^nt

P: initial amount

r: Interest rate

n: number of times compounded pet t

t: time period (usually in years)

3460(1 + 0.085/1)^6 = 5644.8775806