kira puts $500.00 into an account to use for school expenses. the account earns 11% interest, compounded…

kira puts $500.00 into an account to use for school expenses. the account earns 11% interest, compounded annually. how much will be in the account after 6 years? use the formula $a = p(1+\frac{r}{n})^{nt}$, where $a$ is the balance (final amount), $p$ is the principal (starting amount), $r$ is the interest rate expressed as a decimal, $n$ is the number of times per year that the interest is compounded, and $t$ is the time in years. round your answer to the nearest cent.

kira puts $500.00 into an account to use for school expenses. the account earns 11% interest, compounded annually. how much will be in the account after 6 years? use the formula $a = p(1+\frac{r}{n})^{nt}$, where $a$ is the balance (final amount), $p$ is the principal (starting amount), $r$ is the interest rate expressed as a decimal, $n$ is the number of times per year that the interest is compounded, and $t$ is the time in years. round your answer to the nearest cent.

Answer

Explanation:

Step1: Identify the values

$P = 500$, $r=0.11$ (since $11%=0.11$), $n = 1$ (compounded annually), $t = 6$.

Step2: Substitute into formula

$A=500\left(1+\frac{0.11}{1}\right)^{1\times6}=500(1 + 0.11)^{6}$.

Step3: Calculate the value

First, calculate $(1 + 0.11)^{6}=1.11^{6}\approx1.870414$. Then, $A = 500\times1.870414 = 935.207$.

Step4: Round the answer

Rounding $935.207$ to the nearest cent gives $935.21$.

Answer:

$935.21$