Suppose your​ friend's parents invest $ 15,000 in an account paying 4 % compounded annually. What will the balance be after 6 ​years?

Answer 1

Greetings! Lets solve this shall we ?

So, we must find out the future value of this account after 15,000 dollars was invested! To do this, we need the compound interest formula such that

A = P(1+r/n)^n*t , where r is 0.04, n = 1, t = 6 and P = $15000. We plug in these values to get

A = 15000(1.04)⁶ .........You can put this into your calculator such that it becomes

A = $18,979.79

I hope this helped!