1. **State the problem:** Aiman deposited 6000 into a savings account with 7% annual compound interest. We need to find the future value after 6 years.
2. **Formula used:** The formula for compound interest is $$A = P \left(1 + \frac{r}{n}\right)^{nt}$$ where:
- $A$ is the amount of money accumulated after $t$ years, including interest.
- $P$ is the principal amount (initial deposit).
- $r$ is the annual interest rate (decimal).
- $n$ is the number of times interest is compounded per year.
- $t$ is the number of years.
3. **Apply values:** Here, $P = 6000$, $r = 0.07$, $n = 1$ (compounded annually), and $t = 6$.
4. **Calculate:**
$$A = 6000 \left(1 + \frac{0.07}{1}\right)^{1 \times 6} = 6000 \times (1.07)^6$$
5. **Evaluate:**
Calculate $(1.07)^6$:
$$1.07^6 \approx 1.5007$$
6. **Final amount:**
$$A = 6000 \times 1.5007 = 9004.2$$
So, the future value of the investment after 6 years is approximately 9004.2.
Compound Interest E81C8C
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