Question

$8000.00 on a savings account that pays 6 % interest after five years how much money will be in bank?

Answer 1

If I’m reading the question right you don’t get the interest until after 5 years. The question doesn’t say you will get 6% every year after 5 years. The way I figured it out was 8000x 6%=480 interest 8000+480=8480.

Answer 2

the answer is 10,400. You multiply 8000 by .06 by 5 to get 2,400 which is the interest earned. you have to add 2,400 to 8,000 to find the compound interest which is 10,400