You deposit $500 in an account that pays 8% annual interest compounded yearly. What is the account balance after six years? Form

Question

Eva8 [605]

2 years ago

11

You deposit $500 in an account that pays 8% annual interest compounded yearly. What is the account balance after six years? Form

ula: A=C(1+r)t

Mathematics

1 answer:

Diano4ka-milaya [45] · Answer 1 · 2022-04-09T06:38:22+03:00

Diano4ka-milaya [45]2 years ago

7 0

Principal, P = $500
r =8% = 0.08, the interest rate
n = 1, the compounding interval
t = 6 years

The value after 6 years is
$A = P(1 + \frac{r}{n} )^{nt}$
That is,
A = $500*(1 + 0.08)⁶ = $793.44

Answer: $793.44