Question

Use the annual compound interest formula to find the amount in the savings account at the end of the time period and then find the total interest earned.
$8,000 at 5% for 3 years.
It is one of these answers if it helps...
$12,700 in account $4,700 interest
$10,520 in account $2,520 interest
$8,315 in account $315 interest
$9,216 in account $1,261 interest

Answer 1

Answer:

$9,216 in account $1,261 interest.

Step-by-step explanation:

The compound interest is given by:

$a = p(1 + \frac{r}{n})^{nt}$

P = Principal

r = rate

n = Number of times interest is compounded per unit t

t = time

so:

$a = 8000(1 + \frac{0.05}{1} ) ^{1 .3} \\ a = 9261$

therefore, the answer is:

$9,216 in account $1,261 interest