# Suppose you deposit $400 in a savings account. If the interest rate is 5% per year, what is the interest earned in six years?

##### 1 Answer

Mar 31, 2018

536 usd

#### Explanation:

This would be an compound interest. Meaning that your gain every year would increase exponentially.

The equation to calculate this would be:

#K_n# is your savings after the period#n# #K_0# is your starting deposit#p# is the percentage#n# is the period of interest

for your example we would have.