Question

Find the balance in the account after the given period.$6000 principal earning 4% compounded annually, 8 yearsThe balance after 8 years will be $(Round to the nearest cent as needed.)

Answer 1

We will use the future value formula:

`FV=P(1+r)^t`

Where

P is the principal invested

r is the rate of interest, in decimal

t is the time

Given,

P = 6000

r is 4% which is 4/100 = 0.04

t is 8

Plugging in and solving:

`\begin{gathered} FV=P(1+r)^t \\ FV=6000(1+0.04)^8 \\ FV=6000(1.04)^8 \\ FV=8211.41 \end{gathered}`

So, the account will be worth:

$8211.41