Question

susan makes a one-time deposit of $6,500 that compounds annually at a rate of 4.7%. dhe uses the formula A(t)=P(1+r/n)^nXt to determine the ending balance. if A(t) is the ending amount, P is the Principal, r is the interest rate, n is the number of times it is compounded, and t is the amount of time in years; what is susans APPROXIMATE account balance after 6 years?

Answer 1

Step-by-step explanation:

To determine the ending balance, we'll use the below formula as given in the question;

`A=P(1+(r)/(n))^(nt)`

where A = the ending amount

P = the principal (starting amount) = $6,500

r = interest rate in decimal = 4.7% = 4.7/100 = 0.047

n = number of times interest is compounded in a year = 1

t = amount of time in years = 6 years

Let's go ahead and substitute the above values into our equation and solve for A;