Answer:1262.5
Step-by-step explanation:
A=amount p=principal r=rate n=time in years
A=p(1+r/100)^n
A=1000(1+6/100)^4
A=1000(1+0.06)^4
A=1000(1.06)^4
A=1000×1.2625
A=1262.5
Answer:the final amount is $1263
Step-by-step explanation:
Initial amount deposited into the account is $1000 This means that the principal is
P = 1000
It was compounded annually. This means that it was compounded once in a year. So
n = 1
The rate at which the principal was compounded is 6%. So
r = 6/100 = 0.06
It was compounded for 4 years. So
t = 4
The formula for compound interest is
A = P(1+r/n)^nt
A = total amount in the account at the end of t years. Therefore
A = 1000 (1+0.06/1)^1×4
A = 1000(1.06)^4
A = $1263
