Question

For the investment with interest compounded annually, find the final balance and the total interest earned.

$500 for 2 years at 8%

A.
final balance: $540
interest earned: $40

B.
final balance: $580
interest earned: $80

C.
final balance: $583.20
interest earned: $83.20

D.
final balance: $620
interest earned: $120

Answer 1

option c here :-)

Answer 2

can u explain then

Answer 3

use the previous question formula and steps...

Answer 4

ok thanx

Answer 5

plesaure

Answer 6

$500 for 2 years at 8%, compounded annually

The appropriate formula is \[A=P(1+r)^n\] where A is the amount after 2 years, P is the principal, r is the interest rate (expressed as a decimal fraction), and n is 2, the number of years. Here P = $500 and r=0.08.

Please substitute n=2, P=$500 and r=0.08 into the formula, above. Calculate A.
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