Answer:
Amount after given year = $2,290.34 (Approx.)
Step-by-step explanation:
Given:
Principal = $650
Annual interest rate = 6.5%
Time = 20 year
Find:
Amount after 20 year
Computation:
Using compound formula;
A = P[1+r]ⁿ
Where;
A = Amount after given year
P = Principal
r = Annual interest rate
n = Time taken
Amount after given year = 650[1+6.5%]²⁰
Amount after given year = 650[1+0.065]²⁰
Amount after given year = 650[1.065]²⁰
Amount after given year = 650[3.5236]
Amount after given year = $2,290.34 (Approx.)
