Question 996101: if $6000 is deposited into an account and the interest rate is 9%/year. how much is in the account after 7 years.
I need to find the annually.
here are my calculation for it and I would be glad if you could show me where I did my mistake.
a=p(1+r/n)n.t
6000(1+0.09/12)12(7)
45939.88
Answer by Boreal(15235)   (Show Source):
You can put this solution on YOUR website! The interest rate is once a year as I read the question. Your calculation is for monthly interest. If that was the question, then the formula is correct, but the answer was not. 6000(1+.0075)^84=11239.21.
If it is annually, then it is 6000{1.09}^7=10968.23
A quick way to get an idea of the answer is to use the rule of 72. It isn't completely accurate here, but it is close enough. Interest rate divided into 72= doubling time in years. Here, one would expect doubling in 8 years, so in 7 years, the principal has not doubled and must be less than $12,000.
|
|
|
