$$\text { Use the compound interest formulas } A = P \left( 1 + \frac { r } { n } \right) ^ { n t } \text { and } A = P e ^ { r t } \text { to solve. }$$
-Find the accumulated value of an investment of $940 at 6% compounded annually for 6 years.
A)$1333.41
B)$1257.93
C)$1278.40
D)$1222.00

Question

Quizplus · Accepted Answer

Using the compound interest formula $A = P \left(1 + \frac{r}{n}\right)^{nt}$, where $P = 940$, $r = 0.06$ (6% as a decimal), $n = 1$ (compounded annually), and $t = 6$ years, we calculate the accumulated value as follows: $A = 940 \left(1 + \frac{0.06}{1}\right)^{1 \cdot 6} = 940 \left(1.06\right)^6 \approx 1333.41$.

Use the compound interest formulas A=P(1+rn)nt and A=Pert to solve. \text { Use the compound interest formulas } A = P \left( 1 + \frac { r } { n } \right) ^ { n t } \text { and } A = P e ^ { r t } \text { to solve. } Use the compound interest formulas A=P(1+nr​)nt and A=Pert to solve.

$\text { Use the compound interest formulas } A = P \left( 1 + \frac { r } { n } \right) ^ { n t } \text { and } A = P e ^ { r t } \text { to solve. }$