Question

Josie has 800 savings account that earns 10 interest per year

Calculate the interest after 1 year

Answer 1

$880

Step-by-step explanation:

Use the compound formula:
`A=P(1+(r)/(n) )^n^t`

A=final amount

P=Initial balance (in this case 800)

r=interest rate (in this case 10%=0.1)

n=number of times interest applied per time period (in this case 1)

t=time (in this case 1)

Substitute into the formula:
`A=800(1+(0.1)/(1) )^(^1^)`

Solve:
`A=800(1.1)^1`

`A=880`

I hope this helped you! (:

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