SOLUTION: If a bank compouundsinterest annually (once each year), then the amount of money, A, in a bank account is determined by the formula A=p(1=r)^2. Here P= the principal, or the amount

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Question 23402: If a bank compouundsinterest annually (once each year), then the amount of money, A, in a bank account is determined by the formula A=p(1=r)^2. Here P= the principal, or the amount invested, r= the rate of interst, and x= the number of years involved. If $100 is invested at 6% intesrest compunted annually, the amount, A, in the account is found by using the formula A= $100(1.06)^x. Find the amount of money in this account at the end of:
a. 1 year
b. 2 years
c. 3 years
4. 4 years
Answer by stanbon(48535) About Me  (Show Source):
You can put this solution on YOUR website!
a. 1 year= $106
b. 2 years= 100(1.06)^2=112.36
c. 3 years=119.1
4. 4 years=126.25