Question

find the balance in the account: $700 principal earning 4%, compounded annually, after 6 years

Answer 1

$885.72

You use the equation \[A = P (1 + (r/n))^{nt}\]
P = principal amount (the initial amount you borrow or deposit)
r = annual rate of interest (as a decimal)
t = number of years the amount is deposited or borrowed for.
A = amount of money accumulated after n years, including interest.
n = number of times the interest is compounded per year