Question

What would be the value of 150 after eight years if you earn 12 percent interest per year

Answer 1

The answer depends on what type of interest. If you are using compound interest, then the interest is different every year, as the amount you earn goes up because the amount you have in the bank goes up. Simple interest is the opposite, as you earn one amount each year, and it does not change.
So.....
Simple Interest:
0.12 * 150 = 18
18 * 8 = 144
144 + 150 = $294
Compound Interest:
150(1 + 0.12)^8
150 * 1.12^8
150 * 2.475 = $371

Answer 2

Answer:

$371.3944

Step-by-step explanation:

Principal = 150

Time = 8 years

Rate of interest = 12% = 0.12

No. of compounds per year = n = 1

Formula: $A=P(1+\frac{r}{n})^{nt}$

Where A is the amount

P is the principal

r is the rate of interest in decimals

t = time in years

n = no. of compounds per year

Substitute the values in the formula :

$A=150(1+\frac{0.12}{1})^{8}$

$A=371.3944$

Hence the value of 150 after eight years if you earn 12 percent interest per year is $371.3944