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