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

Answer 1

This can be expressed as the function
\[y=400(1.06^x)\]
Or you could do it by taking 6% of 400, adding it to 400, taking 6% of the new number, adding that to the new number, etc.

Answer 2

first can you calculi 6% of 400 = ?
- so and this just multiplie by 5 assum to 400 and will get the right total amount after 5 year

Answer 3

Where y is the money after a period of time
and x is the number of years

Answer 4

@lilkg77 do you understand it ?

Answer 5

Yes a little @jhonyy9

Answer 6

Well the way I got that expression is exponential equations are always written as
c(t^x)
Where c is the initial and t is the rate of change
I put 1.06 instead of .06 for t because it is growth not decay in this case

Answer 7

p=$400 , r = 6% , n= 5

\[Amount (A) = p ( 1+ \frac{ r }{ 100 })^{n}\]

substitute the values simplify it

Answer 8

If it is annual compounding the formula is just
Total = Principal × ( 1 + Rate ) ^ years

Answer 9

Total = 400 × ( 1.06 )^5

Answer 10

Thanks @wolf1728

Answer 11

u r welcome lilkg77 :-)