on january 1,1997 you deposit $200.00 in a bank account paying 5% interest compunded annually on december 31 of each year. which of the following will be the account balance on january 1,2005
algebra 1 - Henry, Wednesday, March 27, 2013 at 7:58pm
P = Po(1+r)^n.
Po = $200.00
r = (5%/100%) = 0.05 = Annual % rate
expressed as a decimal.
n = 1Comp/yr * 8yrs = 8 Compounding
Plug the above values into the given Eq and get:
P = $295.49.