Find the accumulated value of an investment of $ 17,000 at 6% compounded annually for 13 years.

Question

Use the compound interest formulas A = P(1+r/n)^nt and A=Pe^rt to solve.

Answer 1

the underlying formula that you want to use here for compound interest is

A = P(1 + r/n)^nt

for this scenario that means taking

A = 17000(1 + 0.06/1)^(1*13)

A = 17000(1.06)^13

A = 36259.78

meaning that after 13 year in this situation, the investment will be worth $36,259.78

Answer 2

A=17000(1.06)^13=

or

A=17000e^(0.6x13)=