Answer
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A = 6,853.60
↓Steps Explained:↓
How much is 6000 worth after 4.5 years
using an annual interest rate of 3%
compounded annually?
Calculate Accumulated Balance
A = B(1 + i)n
where A = accumulated balance
B = opening balance
i = Annually interest rate
and n = number of periods
Plugging in our values
A = 6,853.60
A = 6000(1.03)4.5
A = 6000(1.1422666868246)
How much interest was earned?
Interest Earned = Accum. Value - Start Balance
Plug in our values
Interest Earned = 6,853.60 - 0.00
Interest Earned = 6,853.60
6853.6
Final Answer
A = 6,853.60Take the Quiz
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