I have $789 in the bank and make 1% interest a month. How much money do I have at the end of 6 months?
Our balance is found using our compound interest formula:
New Balance = Starting Balance * (1 + i/100)^t
With I = 1% and t = 6, we have:
New Balance = 789 * (1 + 1/100)^6
New Balance = 789 * (1.01)^6
New Balance = 789 * 1.0615201506
New Balance = 837.54
Our balance is found using our compound interest formula:
New Balance = Starting Balance * (1 + i/100)^t
With I = 1% and t = 6, we have:
New Balance = 789 * (1 + 1/100)^6
New Balance = 789 * (1.01)^6
New Balance = 789 * 1.0615201506
New Balance = 837.54