A principal of $400 is invested in an account at 6% per year compounded annually. What is the total amount of money in the account after 5 years?

A. $526.00
B. $531.37
C. $535.29
D. $520.00

Question

A principal of $400 is invested in an account at 6% per year compounded annually. What is the total amount of money in the account after 5 years?

 		A.	$526.00
 		B.	$531.37
 		C.	$535.29
 		D.	$520.00

anonymous · Answer

@Brill

tkhunny · Answer

Have you considered calculating the value?

400.00 * 1.06 = 424.00 -- There's the end of the 1st year.  Go!

anonymous · Answer

535.29?

tkhunny · Answer

You tell me.  How did you arrive at this value?

See how neatly I demonstrate my result?  Do that.

anonymous · Answer

yes i kept timesing 1.06 5 times

anonymous · Answer

thank you

tkhunny · Answer

Don't do that.  $400.00\cdot 1.06^{5}$ - Please.  Try the exponent.

"timesing" is not a word.