Ronald opened a savings account and deposited 100.00 as principal the account 2% interest compounded annually. What is the balance after 8 years?
_____________________________________________________________
Interest compounded
A = P(1 + r/n)^nt
A= final amount (P + Interest )
P= incial amount
r= Interest
n= compounding periods (year)
t= time
________________________
Data
A = P(1 + r/n)^nt
P= 100.00
r= 0.02
n= 1 (compounded annually)
t= 8
_______________
A = 100.00 (1 + 0.02 /1)^1* 8
A = 117.17
_______________
Answer
The balance after 8 years is 117.17
________________
Do you have any questions regarding the solution?
If you don’t need further explanation on this question, we can end the session.
I want to remind you this answer will always be saved in your profile. I’d really appreciate you letting me know how I did by rating our session after you exit. Thanks and have a great day!
