If a principal of $1020 is invested at an annual interest rate of 5% compounded annually, what is the account balance at the end of 6 years?
Choose one answer.
a. $6426
b. $1367
c. $1326
d. 1302

Question

If a principal of $1020 is invested at an annual interest rate of 5% compounded annually, what is the account balance at the end of 6 years?
Choose one answer.
	 a. $6426	
	 b. $1367	
	 c. $1326	
	 d. 1302

anonymous · Answer

can u please helps thanks

agreene · Answer

Remember:
$$A=P(1+\frac{r}n)^{nt}$$
with:
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

anonymous · Answer

ok thanks do u know the answer the test is time

agreene · Answer

I'm not gonna sit here and do the test work for you. All you have to do is plug in the values and find what A is.