Problema Solution
If $1900 is invested in an account which earns 5% interest compounded annually, what will be the balance of the account at the end of 6 years? Use the formula P = A(1 + r)t, where P is the account balance, A is the amount originally invested, r is the interest rate as a decimal, and t is the time invested.
Answer provided by our tutors
P = A(1 + r)^t
Given A=$1900, r=0.05, t=6
We need to find P.
P=1900(1+0.05)^6
p=1900(1.05)^6
p=2546.18
So, balance of the account at the end of 6 years is $2546.18