SOLUTION: Hi. I don't get this question: $1000 is deposited in a savings account that is compounded annually at 6%. The balance, A, in the account after t years is A = {{{1000(1+.06)^t}}}.

Algebra ->  Finance -> SOLUTION: Hi. I don't get this question: $1000 is deposited in a savings account that is compounded annually at 6%. The balance, A, in the account after t years is A = {{{1000(1+.06)^t}}}.      Log On


   

Question 96545This question is from textbook
: Hi. I don't get this question: $1000 is deposited in a savings account that is compounded annually at 6%. The balance, A, in the account after t years is
A = 1000%281%2B.06%29%5Et. Find the balance after 1 year, 10 years, and 20 years. This question is from textbook

Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
$1000 is deposited in a savings account that is compounded annually at 6%. The balance, A, in the account after t years is
A(t) = 1000(1+(.06))^(t)
Find the balance after 1 year, 10 years, and 20 years.
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One year:
A(1)= 1000(1+0.06/1)^(1*1)
A(1)=1000*1.06
A(1)= $1060.00
--------------------
Ten years:
A(10)= 1000(1.06)^10 = 1000*1.79085= $1790.85
-----------------
A(20) = 1000(1.06)^20 = 1000*3.20714 = $3207.14
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Cheers,
Stan H.