An investor puts $500 in an account that pays % interest compounded annually. Find the account balance after 8 years.
so what is it-
To find the account balance after 8 years with compound interest, we can use the formula:
A = P(1 + r/n)^(n*t)
Where:
A is the account balance
P is the principal amount (initial investment)
r is the annual interest rate (in decimal form; i.e., if the annual interest rate is 5%, then r = 0.05)
n is the number of times interest is compounded per year
t is the number of years
In this case, the principal amount (P) is $500, the annual interest rate (r) is %, compounded annually (n = 1), and we want to find the account balance after 8 years (t = 8).
Let's assume the annual interest rate is, for example, 5% (r = 0.05). You can substitute your own annual interest rate as needed.
A = 500(1 + 0.05/1)^(1*8)
A = 500(1 + 0.05)^8
A = 500(1.05)^8
Using a calculator, we can find the value of (1.05)^8:
(1.05)^8 ≈ 1.46933
Now, we can substitute this value back into the formula:
A = 500 * 1.46933
A ≈ $734.67
So, the account balance after 8 years with an initial investment of $500 and an annual interest rate of 5% compounded annually would be approximately $734.67.
To find the account balance after 8 years, we need to use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the final account balance
P = the initial principal amount (in this case, $500)
r = the annual interest rate (in percentage form)
n = the number of times the interest is compounded per year (since it is annually compounded, n will be 1)
t = the number of years
Since we're given that the interest rate is in percentage form, we need to convert it to decimal form by dividing it by 100. Let's assume the interest rate is 5%.
r = 5 / 100 = 0.05
Now we can substitute the values into the formula and calculate the account balance after 8 years:
A = 500(1 + 0.05/1)^(1*8)
A = 500(1.05)^8
To simplify further, we can use a calculator or a spreadsheet to raise 1.05 to the power of 8. The result is approximately 734.65.
A ≈ 500(1.05)^8 ≈ $734.65
Therefore, the account balance after 8 years would be approximately $734.65.
500(1 + 8x/100)
where x is the missing % rate
Proofread your posts, folks!