Question

Using the expression above choose the correct answer for the new balance in amount of interest earned in the following compound interest problem $950 at 7% for eight years compounded annually

Answer 1

Answer:

$1,632.28

Step-by-step explanation:

Here is the website I used

https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator

Answer 2

Answer:

Given:

P=950

r=0.07

t=8

F=950(1.07)^8

= 1632.28 (total amount)

Interest = total amount - principal

=1632.28 - 950

=682.28

Step-by-step explanation:

The formula is:

Future value = accumulated amount, F = P(1+r)^t

P=principal

r=annual interest rate [compounded annually]

t=number of years of loan