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