Question

Ceasar opens a bank account and makes an initial deposit of $800. The banker tells Ceasar that he is going to receive an annual rate of 10% on his investment. Find the bank balance assuming Tom leaves the account untouched for 8 years.

Answer 1

The formula is
A=p (1+r)^t
A future value?
P present value 800
R interest rate 0.1
T time 8 years
A=800×(1+0.1)^(8)
A=1,714.87

Answer 2

Answer: The balance in the account after 8 years is $ 1714.871 (approx)

Explanation:

Since, the principal amount, P = $ 800

Annual rate of percentage, r = 10 %

Time, t = 8 years

Hence, the amount in the account after 8 years if it is untouched,

`A=P(1+(r)/(100))^t`

`=800(1+(10)/(100))^8`

`=800(1+0.1)^8`

`=800(1.01)^8`

`=800* 2.14358881`

`=1714.871048\approx 1714.871`

Thus, the approximate balance in the account after 8 years is $ 1714.871.