Question

Valentina opened a savings account and deposited $500.00 as principal. The account interest, compounded annually. What is the balance after 8 years? nt Use the formula A = P 1 + where A is the balance (final amount), P is the principal (starting 1 n amount), r is the interest rate expressed as a decimal, n is the number of times per year that the interest is compounded, and t is the time in years. Round your answer to the nearest cent.

Answer 1

For this case we can use the following formula:

`A=P(1+(r)/(n))^(nt)`

Where:

P= 500 initial amount

r=

n= 1 since the rate is annually

t= 8 years

And replacing we got: