Question

You put $939 into an investment at 8% for six years. What will the balance be at the end of six years?

Answer 1

At simple interest it will be 939+939×6×0.08=$1389.72.

Answer 2

$1490.074

Explanation:

Hello

Well, the formula for determining the final capital is as follows: CF = CI (1 + i) ^ n where CF is the final capital, CI is the initial capital, i is the interest rates and n is the term or number of periods

`Cf=Ci(1+i)^(n)`

step 1

we need to convert the 8% to decimal

8%= 8/100 = 0.08

Step 2

replace

`Cf=Ci(1+i)^(n)\\Cf=939(1+0.08)^(6)\\Cf=939(1.08^(6))\\Cf=939(1.5868)\\Cf=1490.074`

Cf= $1490.074

final balance $1490.074

have a great day.