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A bank account principal is $1,000 and accumulates yearly interest at 9%. Assuming that no withdrawals are made, use the compound interest formula to compute the amount in the account after 6 years.

Respuesta :

Answer:

$1677.10

Explanation:

We'll use the below compound interest formula to solve the given question;

[tex]A=P(1+\frac{r}{n})^{nt}[/tex]

where A = the final amount = ?

P = the principal amount = $1000

r = interest rate in decimal = 9% = 9/100 = 0.09

r = number of times interest is compounded per time = 1

t = number of time period = 6 years

Let's substitute the above values into our formula and solve for A;

[tex]\begin{gathered} A=1000(1+\frac{0.09}{1})^{1\times6} \\ A=1000(1.09)^6 \\ A=1677.10 \end{gathered}[/tex]

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