Post a New Question

Math

posted by on .

$1000 in a savings bond on the day you were born. The bond pays 6% interest compounded annually. How much is it worth in 18 yrs?

I know it earns $60 a yr. but I am lost after that.

  • Math - ,

    P = Po(1+r)^n.

    r = 6% / 100% = 0.06 = Annual % rate expressed as a decimal.

    n = 1comp./yr * 18yrs = 18 compounding
    periods.

    P = 1000(1.06)^18 = $2854.34

Answer This Question

First Name:
School Subject:
Answer:

Related Questions

More Related Questions

Post a New Question