Homework Help: sauce

Posted by thick on Tuesday, March 10, 2009 at 4:58pm.

a man deposits $8000 in his bank account.if the bank pays 8% compoud intrest per annum,what will be his total intrest after 3 years

sauce - lyne, Tuesday, March 10, 2009 at 5:02pm
the formula is

interest = prt
Math tutor verify this - Chopsticks, Tuesday, March 10, 2009 at 5:38pm
The compound interest formula is:

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

P = principal amount (the initial amount you borrow or deposit)

r = annual rate of interest (as a decimal)

t = number of years the amount is deposited or borrowed for.

A = amount of money accumulated after n years, including interest.

n = number of times the interest is compounded per year

8000(1+.08)^1*3

Source:
depaul
Chopsticks is right - Reiny, Tuesday, March 10, 2009 at 5:43pm
8000(1+.08)^1*3
= 8000(1.08)^3
= 10077.70
sauce - bobpursley, Tuesday, March 10, 2009 at 5:43pm
Chopsticks is right. It is compounded annually. PRT is no compounding.

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