SOLUTION: For the investment with interest compounded annually, find the final balance and the total interest earned. $500 for 2 years at 8%

Question 754259:

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

$500 for 2 years at 8%

Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
For the investment with interest compounded annually, find the final balance and the total interest earned.
$500 for 2 years at 8%
A(t) = P(1+(r/n))^(nt)
A(2) = 500(1+(0.08/1))^(1*2)
A(2) = 500(1.08)^2
A(2) = $583.20
---
Total balance = $583.20
Total interest = $83.20
-------------------------
Cheers,
Stan H.
================
RELATED QUESTIONS
find the final balance and interest ; $820 at 7% compounded annually for 2... (answered by rfer)

How much interest is earned for the investment? $20,000 for 2 years at 6% compounded... (answered by rfer)

How much interest is earned for the investment? $20,000 for 2 years at 6% compounded... (answered by ewatrrr)

How much interest is earned for the investment? $20,000 for 2 years at 6% compounded... (answered by scott8148)

How much interest is earned for the investment? $20,000 for 2 years at 5% compounded... (answered by Tsid)

I have 2 questions 1 is that if sandra invested 30,000 at 8% compounded annually. what... (answered by stanbon)

Using the expression below, choose the correct answers for the new balance and the amount (answered by robertb)

Using the expression below, choose the correct answers for the new balance and amount of... (answered by Boreal)

Using the expression below, choose the correct answers for the new balance and amount of... (answered by Theo)