find the Account balance?

Question

Suppose you put  1200 into an account paying 6% interest annually, and leave the money in the account for 10 years, find the account balance

Answer 1

The account balance is going to be given by the original amount multiplied by the interest each year to we have Amt*(1+r) for the first year and for the second year we have Amt*(1+r)*(1+r) for the second and for the third Amt*(1+r)*(1+r)*(1+r) and so forth with the general equation Amt*(1+r)^y where y is the year. So for this problem the answer is given by 1200(1.06)^10 or $2149.02