I posted before, But I did not understand the link I was give...Please someone help me!
If $7,800 is depostied into an account paying 6% interest compounded annually ( at the end of each year), how much money is in the account after 2 years?
How would I set this up?
First, multiply $7,800 x 1.06. That will give you the amount in the account after one year. Then multiply that answer by 1.06 to find how much is in the account after two years.
Amount= 7800(1+i)2 where i is .06
To set up the problem and find the amount of money in the account after 2 years, you can use the formula for compound interest:
Amount = Principal * (1 + interest rate)^time
In this case, the principal is $7,800, the interest rate is 6% (or 0.06), and the time is 2 years.
Plug in these values into the formula:
Amount = 7800 * (1 + 0.06)^2
Now, we need to simplify the equation:
Amount = 7800 * (1.06)^2
To find the solution, calculate each part of the equation:
(1.06)^2 = 1.1236
Multiply this result by $7,800:
Amount = 7800 * 1.1236
After evaluating the expression, you find that the amount in the account after 2 years is approximately $8,772.48.
I hope this explanation helps you understand how to set up and solve the problem. If you have any further questions, feel free to ask!