it could mean 1. compound interest 2. simple interest.
1. Compound Interest
that means that each year it gives you 8% on that whatever new thing so 8 %= 0.08 Each year, it is multiplied by 1.08 since you add the original (1) to the 8% 0.08 so 6 years means 700 times 1.08^6=700 times 1.08 times 1.08 times 1.08 times 1.08 times 1.08 times 1.08 = 1110.81
2. Simple Interest
So just 8% of that 700 is added on find 8% of 700 8% of 700+0.08 times 700=0.56 6 years = 0.56 times 6 =3.36 add 3.36 + 700= 703.36
Answers are if compound interest = $1110.81 If Simple interest = 703.36
