Question

The balance of an account earning compound interest is found using the formula 2003-02-05-00-00_files/i0240000.jpg, where p is the principal (the amount invested), r is the interest rate, and t is the time in years. What is the account balance after 6 years, if $1,000 is invested at 8%? Round your answer to the nearest whole number.
A.
$1,080
B.
$1,587
C.
$1,480
D.
$1,800

Answer 1

A = P(1+r)^t

Where A is the final account balance
P is the principal amount invested
r is the interest rate as a decimal
t is the # of years