SOLUTION: Aldo is going to a bank to start a savings account for his college fund. The bank will open an account for him that gains 5% COMPOUND interest. Aldo wants to know how much money he

Question 1178549: Aldo is going to a bank to start a savings account for his college fund. The bank will open an account for him that gains 5% COMPOUND interest. Aldo wants to know how much money he will have in 8 years if he puts $1200 in today. Round your answer to two decimal places.

Answer by mananth(16946) (Show Source): You can put this solution on YOUR website!
Principal 1200
years 8
rate 5%
Amount = p*r(1+(r/n)^n-1
Principal P = 1200
Amount= A
years=n 8.00
compounded 1 times a year t
Rate = 5.00 0.05
Amount = P*((n+r)/n)^n*t

Amount = = 1200 *( 1 + 0.05 )^ 1 * 8.00
Amount = 1200 *( 1 + 0.05 )^ 8
1200 *( 1.05 )^ 8.00
Amount = 1772.95

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