Class 3. Q.9

Suppose that a principal amount P₀ is invested at a compound interest rate of r per interest period, for a total of n interest periods. Then the compound amount at the end of the n interest periods is given by $P_n = P_0\,(1+r)^n$. Suppose 10000 is invested at $7\%$ per year, with interest compounded annually. What is the compounded amount at the end of 6 years?