Problema Solution
Find the accumnlated amount A if the principal P = $2,000 is invested at the interest rate of r = 6% per year for t = years, compound annually
Answer provided by our tutors
P = $2,000 the principal amount
r = 0.06 or 6% annual rate of interest (as a decimal)
t = number of years the amount is deposited or borrowed for.
A = amount of money accumulated after t years, including interest
n = 1 number of times the interest is compounded per year
A = P(1 + r/n)^(nt)
A = 2000(1 + 0.6/1)(1*t)
A = 2000(1.6)^t