Question

your $440 gets 5.8% compounded annually for 8 years. what will your $440. be worth in 8 years

Answer 1

Answer:

$690.78

Explanation:

The amount in an account invested at compound interest and compounded m times in a year is derived using the formula:

$Amount\: at\: Compound\: Interest=P(1+\frac{r}{m})^{mt}$

• Principal, P=$440

,

• Interest Rate, r=5.8%=0.058

,

• Number of Years, t=8

,

• Number of times compounded, m =1

Substituting the given values, we have:

$\begin{gathered} Amount\: at\: Compound\: Interest=440(1+\frac{0.058}{1})^{8\times1} \\ =440(1+0.058)^8 \\ =440(1.058)^8 \\ =\ 690.78 \end{gathered}$

Your $440 will be worth $690.78 in 8 years.th $690.78