Question

Your $440 gets 5.8% compounded annually for 8 years. what will your $440. be worth in 8 years

Answer 1

$690.78

Step-by-step explanation:

The amount in an account invested at compound interest and compounded m times in a year is derived using the formula:

`Amount\: at\: Compound\: Interest=P(1+(r)/(m))^(mt)`

• Principal, P=$440

,

• Interest Rate, r=5.8%=0.058

,

• Number of Years, t=8

,

• Number of times compounded, m =1

Substituting the given values, we have:

`\begin{gathered} Amount\: at\: Compound\: Interest=440(1+(0.058)/(1))^(8*1) \\ =440(1+0.058)^8 \\ =440(1.058)^8 \\ =\$690.78 \end{gathered}`

Your $440 will be worth $690.78 in 8 years.th $690.78