Question

Billy puts $200.00 into an account to use for school expenses the account earns 3 % interest compounded annually. How much will be in the account after 8 years?

Answer 1

$253.35.

Step-by-step explanation:

To find the amount in an account at compound interest, we use the formula below:

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

• Principal, P=$200

,

• Interest Rate, r=3%=0.03

,

• Number of times compounded, n=1

,

• Number of years, t=8

Substituting the values, we have:

`\begin{gathered} A=200(1+(0.03)/(1))^(1*8) \\ =200(1+0.03)^8 \\ =200(1.03)^8 \\ =\$253.35 \end{gathered}`

The amount in the account after 8 years will be $253.35.