The money in the Felix's account will be $6798 when he is 21.
Step-by-step explanation:
It is given that,
- The amount deposited is $2000.
- The account earns 6% compound interest.
- It is compounded annually for 21 years.
To find the money in Felix's account after 21 years :
The formula used here is,
⇒ [tex]A = P(1+r/n)^{nt}[/tex]
where A is the amount after 21 years.
- P is the initial amount deposited ⇒ P = 2000
- r is the rate ⇒ r = 0.06
- n is the number of times interest is compounded per year⇒ n = 1
- t is the time period ⇒ t = 21
⇒ [tex]2000(1+0.06/1)^{21\times 1}[/tex]
⇒ [tex]2000(1.06)^{21}[/tex]
⇒ [tex]2000\times3.399[/tex]
⇒ [tex]6798[/tex]
Therefore, The money in the Felix's account will be $6798 when he is 21.
