Question

Tom opens a bank account and makes an initial deposit of $500. The banker tells Tom that he is going to receive an annual rate of 6% on his investment. Find the bank balance assuming Tom leaves the account untouched for 15 years.

Answer 1

here,
p = $ 500
r = 6%p.a
t = 15 years
now,
si = p *r* t /100
= 500*6*15 /100
= $450
amount = p+ si
= $500 + $450
= $950

Answer 2

FV = 500 (1+0.06)^15
FV = 1198.27 is right answer