$23,000 invested today in an account with 5% interest compounding yearly will grow to what amount in 6 years?

Question

Quizplus · Accepted Answer

We can use the formula A=P(1+r/n)^(n*t) where A is the amount after t years, P is the principal, r is the interest rate, and n is the number of times compounded per year. Plugging in the values, we get A=23000(1+0.05/1)^(1*6) which simplifies to A=30820. Therefore, the answer is C.

$23,000 Invested Today in an Account with 5% Interest Compounding