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Popular Word Problems >

Suppose that 6500 is placed in an account that pays 17% interest compounded each year.Assume that no withdrawals are made from the account. find the amount in the account at the end of 1 year.

Solução

S u pp ose t ha t 6500 i s pl a ce d in an a cco u n t t ha t p a ys 17% in t eres t co m p o u n d e d e a c h ye a r . A ss u m e t ha t n o w i t h d r a w a l s a re ma d e f ro m t h e a cco u n t . f in d t h e am o u n t in t h e a cco u n t a t t h e e n d o f 1 ye a r .

Solução

Amount : 7605

Passos da solução

Translate the problem into an equation:

A = 6500 (1 + \frac{0.17}{1})^{1 \cdot 1}

6500 (1 + \frac{0.17}{1})^{1 \cdot 1} = 7605

Amount : 7605

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