Harvey deposited $6,020 new account at his bank the bank pays 4.5% interest compounded annually on this account Harvey makes no additional deposits or withdrawals what is the balance of the account at the end of 6 years
To calculate the balance of the account at the end of 6 years, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the amount of money accumulated after n years, including interest
P = the principal amount (initial deposit)
r = the annual interest rate (decimal)
n = the number of times that interest is compounded per year
t = the number of years the money is invested for
Plugging in the values given:
P = $6,020
r = 4.5% = 0.045
n = 1 (interest compounded annually)
t = 6 years
A = 6,020(1 + 0.045/1)^(1*6)
A = 6,020(1.045)^6
A = 6,020(1.295952)
A = $7,801.71
Therefore, the balance of the account at the end of 6 years will be $7,801.71.