191k views
0 votes
Use the formula A = P(1 + r)^t to find the total amount of money accumulated for an initial investment of $200 at 8% compounded

annually after 4 years.

1 Answer

3 votes

Final answer:

The total amount of money accumulated for an initial investment of $200 at 8% compounded annually after 4 years is $272.10.

Step-by-step explanation:

To find the total amount of money accumulated for an initial investment of $200 at 8% compounded annually after 4 years, we can use the formula A = P(1 + r)^t. Here:

  • P represents the initial investment ($200)
  • r represents the interest rate (8% or 0.08)
  • t represents the number of years (4 years)

Plugging in the given values into the formula, we get:

A = 200(1 + 0.08)^4

A = 200(1.08)^4

A = 200(1.3605)

A = $272.10

Therefore, the total amount of money accumulated for an initial investment of $200 at 8% compounded annually after 4 years is $272.10.

User Rune Jensen
by
7.6k points