Question

The balance of an account earning compound interest is found using the formula a=p(1+R)T, where p is the principal (the amount invested), r is the interest rate, and t is the time in years. What is the account balance after 6 years, if $1,000 is invested at 8%? Round your answer to the nearest whole number.

Answer 1

`\bf ~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+r\right)^(t) \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\to &\$1000\\ r=rate\to 8\%\to (8)/(100)\to &0.08\\ t=years\to &6 \end{cases} \\\\\\ A=1000(1+0.08)^6\implies A=1000(1.08)^6`