# What is the compound interest for a $200 principal invested for 6 years at an interest rate of 9%?

##### 1 Answer

#### Answer:

**Amount (Principal Amount + Interest) =**

**Your deposit $200 pays 9 percent interest (0.09) annually. **

**At the end of 6 years, your balance will have grown to $335.42.**

#### Explanation:

**Given:**

**[ P ] Principal Amount (Initial Deposit) = **

**[ r ] Rate of Interest = **

**[ t ] Period (in Years) = **

**[ n ] Number of times the interest is compounded/year = **

I am assuming that the interest is compounded once annually.

We must now find

[ A ] Amount accumulated after "n" years, including interest and also the Compound Interest earned/paid

We will use the following formula to find Amount [ A ]

**Amount [ A ]**

Using the values given in the problem, we get

**Amount = **

Hence, if your deposit of $200 pays 9 percent interest (0.09) annually, and you keep the deposit for 6 years, at the end of six years, your balance will have grown to $335.42.