math
If $7,800 is depostied into an account paying 6% interest compounded annually ( at the end of each year), how much money is in the account after 2 years?
How would I set this up?
Use the formula at this site:
(Broken Link Removed)
I did not understand that!
Reply
Answers
The formula provided uses the compound interest formula to calculate how much money would be in the account after two years. In the formula, A is the final amount, P is the principal amount, r is the interest rate, n is the number of times the interest is compounded per year and t is the number of years. So, filling in the values given in the problem, P = 7800, r = 6%, n = 1 (as the interest is compounded annually) and t = 2, we get A = 7800 x 1.06^2 = 8219.68. Therefore, after two years, there would be 8219.68 in the account.
