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Tom opens a bank account and makes an initial deposit of $500. The banker tells Tom that he is going to revive an annual rate of 6% on his investment. Find the bank balance assuming Tom leaves the account untouched for 15 years.

Respuesta :

DeanR

Revive? Ah, receive.


6% interest compounded annually.


Each year Tom's money gets multiplied by 1.06.


So after 15 years, Tom has


[tex]500 \times 1.06^{15} = \$1198.28[/tex]



lina3hansen

Answer:

Tom will have $1,198.28 in 15 years

Step-by-step explanation:

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

A(15) = 500(1 + 0.06/1)^1(15)

A(15) = 500(1.06)^15

A(15) = 500(2.3965581931)

A(15) = 1198.27909655

A(15) = 1198.28

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