The formula for compound interest is \(A = P(1 + r/n)^{(nt)}\)
In this formula:
A = the future value of the investment/loan, including interest
P = the initial deposit or loan amount
r = the annual interest rate as a decimal
n = the number of times that interest is compounded per year
t = the number of years the money is invested or borrowed for
To solve, first substitute: \(A = 1050(1 + 0.06/1)^{(1*25)}\)
Then simplify: \(A = 1050(1.06)^{(25)}
\\ A = 1050(4.29)
\\ A=4506.46\)
After 25 years the value of the investment/loan will be $ 4506.46.
