0 like 0 dislike
Henry deposited $1700 in a savings account that earned 2.1% compound interest. If he made no more deposits, how much would he have in his account after 72 months? ## 1 Answer 0 like 0 dislike The amount that will be there in Henry's account after a period of 6 years will be$1,925.765.

What is compound interest?

Interest on interest, or compound interest, is the adding of interest to the principal sum of a loan or deposit. It's the outcome of reinvesting interest rather than paying it out so that interest is received on the principal plus previously collected interest in the next quarter.,

$$A = P(1+ \dfrac{r}{n})^{nt}$$

The amount that Henry put in the account is $1700, while the compound interest on that account is 2.1% annually. Also, the time for which the amount is kept in the account is 72 months which is equal to 6 years. Now, the total amount in Henry's account after a period of 6 years will be, $$\rm Account\ Balance = \1700(1+0.021)^6$$ $$= \1700(1.021)^6\\\\= \1,925.765$$ Hence, the amount that will be there in Henry's account after a period of 6 years will be$1,925.765.