To solve this problem, we will use the formula for compound interest:

A(t) = P(1 + r/n)^(nt)

Where:
A(t) is the amount of money accumulated after n years, including interest.
P is the principal amount (the initial amount of money)
r is the annual interest rate (in decimal)
n is the number of times that interest is compounded per year
t is the time the money is invested for in years

Given in the problem:
P = $200
r = 6% or 0.06 (in decimal form)
n = 1 (since the interest is compounded annually)
t = 5 years

Substitute these values into the formula:

A(t) = 200(1 + 0.06/1)^(1*5)
A(t) = 200(1 + 0.06)^5
A(t) = 200(1.06)^5
A(t) = 200 * 1.3382255776

Now, calculate the value:

A(t) = $267.65

So, the amount of $200 invested at 6% interest compounded annually would be worth approximately $267.65 after 5 years. Therefore, the answer is C. $267.65.

Question

To solve this problem, we will use the formula for compound interest:

A(t) = P(1 + r/n)^(nt)

Where:
A(t) is the amount of money accumulated after n years, including interest.
P is the principal amount (the initial amount of money)
r is the annual interest rate (in decimal)
n is the number of times that interest is compounded per year
t is the time the money is invested for in years

Given in the problem:
P = $200
r = 6% or 0.06 (in decimal form)
n = 1 (since the interest is compounded annually)
t = 5 years

Substitute these values into the formula:

A(t) = 200(1 + 0.06/1)^(1*5)
A(t) = 200(1 + 0.06)^5
A(t) = 200(1.06)^5
A(t) = 200 * 1.3382255776

Now, calculate the value:

A(t) = $267.65

So, the amount of $200 invested at 6% interest compounded annually would be worth approximately $267.65 after 5 years. Therefore, the answer is C. $267.65.

Knowee AI · Accepted Answer