Katy opened a savings account and deposited 1,521.00 as principal. The account earns 6% interest, compounded annually. What is the balance after 5 years?

Solution

Katy opened a savings account and deposited 1, 521.00 as principal. The account earns 6% interest, compounded annually. What is the balance after 5 years?

Solution

Amount : 2035.44

Solution steps

Translate the problem into an equation:

A = 1521 (1 + \frac{0.06}{1})^{1 \cdot 5}

1521 (1 + \frac{0.06}{1})^{1 \cdot 5} = 2035.44110 \dots

Round to the nearest hundredth:

2035.44

Amount : 2035.44

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