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3 votes
brendan puts $600 into a account for school expenses the account earns 6% interest, compounded annually how much will be in the account after seven years

1 Answer

2 votes

Answer:

$902.18

Explanation:

AFTER 1ST YEAR

Simple Interest = (Principal x Rate x Time) ÷ 100

= (600 x 6 x 1) ÷ 100

= 3600 ÷ 100

= $36

Amount after 1st year = $600 + $36 = $636

AFTER 2ND YEAR

Simple Interest = (Principal x Rate x Time) ÷ 100

= (636 x 6 x 1) ÷ 100

= 3816 ÷ 100

= $38.16

Amount after 2nd year = $636 + $38.16 = $674.16

AFTER 3RD YEAR

Simple Interest = (Principal x Rate x Time) ÷ 100

= (674.16 x 6 x 1) ÷ 100

= 4044.96 ÷ 100

= $40.4496

Amount after 3rd year = $674.16 + $40.4496 = $714.6096

AFTER 4TH YEAR

Simple Interest = (Principal x Rate x Time) ÷ 100

= (714.6096 x 6 x 1) ÷ 100

= 4287.6576 ÷ 100

= $42.876576

Amount after 4th year = $714.6096 + $42.876576 = $757.486176

AFTER 5TH YEAR

Simple Interest = (Principal x Rate x Time) ÷ 100

= (757.486176 x 6 x 1) ÷ 100

= 4544.917056 ÷ 100

= $45.44917056

Amount after 5th year = $757.486176 + $45.44917056 = $802.93534656

AFTER 6TH YEAR

Simple Interest = (Principal x Rate x Time) ÷ 100

= (802.93534656 x 6 x 1) ÷ 100

= 4817.61207936 ÷ 100

= $48.1761207936

Amount after 6th year = $802.93534656 + $48.1761207936 = $851.1114673536

AFTER 7TH YEAR

Simple Interest = (Principal x Rate x Time) ÷ 100

= (851.1114673536 x 6 x 1) ÷ 100

= 5106.6688041216 ÷ 100

= $51.066688041216

Amount after 7th year = $851.1114673536 + $51.066688041216 = $902.178155394816

Approximately $902.18

answered
User Dally
by
7.9k points
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