Question

Carl placed $3,500 in a saving account that compounds interest annually at a rate of 1.5% how much will he have in the account after 8 years

Answer 1

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Answer:

  $3942.72

Step-by-step explanation:

The compound interest formula is ...

  A = P(1 +r)^t . . . . P invested at rate r for t years

You have P = 3500, r = 0.015, t = 8. Put these values into the formula and do the arithmetic.

  A = $3500(1.015^8) ≈ $3942.72

Carl will have $3942.72 in the account after 8 years.