Question

One math question about interest??

Annette opened a compound interest savings account with $7000 in principal and an interest rate of 2.5%. If interest is compounded annually, how much is in the account after 8 years?

interest compounded quarterly: A = P (1 + r)t



A. $8544.50
B. $8528.82
C.$1544.50
D.$1528.82

Answer 1

The information is all given. You just have to know which information stands for what in the formula.
P is principal, the initial amount. It's $7000.
r is rate. It's 2.5%, or 0.025
t is time. It's 8

Answer 2

So 7000 (1+ 2.5%) 8???

Answer 3

Total = principal * (1+rate)^years
Total = 7,000*(1.025)^8
Total =8528.8202825694
Total =8,528.82 rounded

Answer 4

WhiteDuckling 2.5 per cent when entered into the formula becomes .025

Answer 5

Okay, thx. I gave you a medal

Answer 6

Okay and thanks :-)