Frank M. answered • 11/11/14

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Help With Emergencies and Understanding

I think the equation you've written is a little off. It should be A = 2000 * 1.06

^{6}. Look at it this way. After the 1st year you will have 2000 * 1.06 dollars. After the 2nd year you will have (2000 *1.06 * 1.06) dollars, or 2000 * 1.06^{2}... & so on. The general formula can be expressed as:A = P * (1 + r)

^{t}