If I open an account of a 1000.00 and it pays year interest at .08
How much will i have in a year?
To calculate how much you will have in a year with an initial account balance of $1000.00 and an interest rate of 0.08 (8%), you need to use the formula for calculating compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the final amount
P = the principal amount (initial account balance)
r = the annual interest rate (in decimal form)
n = the number of times that interest is compounded per year
t = the number of years
In this case, you have an annual interest rate of 0.08, no information about the compounding frequency (n), and a time period of 1 year.
Without the compounding frequency, we cannot accurately determine the final amount. Compound interest can be calculated on different frequencies such as annually, semi-annually, quarterly, monthly, etc. Each frequency will produce a different result.
Assuming the interest is compounded annually, the formula becomes:
A = 1000(1 + 0.08/1)^(1*1)
A = 1000(1 + 0.08)^1
A = 1000(1.08)
A = $1080.00
Therefore, if the interest is compounded annually, you will have $1080.00 in your account after one year. But, if the interest is compounded differently (more frequently), the final amount will be different.