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19-10-2017
Mathematics

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you invest 1600 in an account that pays an interest rate of 6.5%, what is your balance after 6 years and round your answer to the nearest hundredth.

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19-10-2017

Assuming Interest is compounded yearly:
Every year, the principal is multiplied by 1.06
Therefore, we multiply 1600 by 1.06⁶, or multiply by 1.06 six times
1.06⁶ = 1.4185

1600 * 1.4185 = 2,269.63

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