Question

The balance of an account earning compound interest is found using the formula a = p(1+r)^t, 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.

Answer 1

a = p(1+r)^t

p is the principal amount invested (1000)
r is the interest rate (as a decimal, 0.08)
t is years (6)
a is the account balance

plug in p r and t, then evaluate for a