Question

You deposit $100 into a savings plan at the end of each year. The interest rate is 6% compounded annually. Find the value of the annuity after 7 years. Do not round until the final answer. Then, round to the nearest cent

Answer 1

Okay, so. You're gonna be using this formula: A=Pe^(rt). You're looking for A. P is the 100 dollars, e is e, r is your interest rate is decimal form, and t is your number of years, so 7.

So your formula is looking like this:

A=(100)e^(.06*7)
or
A=10.52940141 or 10 bucks and 53 cents.

added to your 100 dollars is $110.53.

...i think.