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algebra 1

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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 -

    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
    periods.

    Plug the above values into the given Eq and get:

    P = $295.49.

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