Ronald opened a savings account and deposited 100.00 as principal the account 2% interest compounded annually. What is the balance after 8 years?
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Interest compounded
A = P(1 + r/n)^nt
A= final amount (P + Interest )
P= incial amount
r= Interest
n= compounding periods (year)
t= time
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Data
A = P(1 + r/n)^nt
P= 100.00
r= 0.02
n= 1 (compounded annually)
t= 8
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A = 100.00 (1 + 0.02 /1)^1* 8
A = 117.17
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Answer
The balance after 8 years is 117.17
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