SOLUTION: You deposit $750 into a savings account that pays 8% interest compounded yearly. How much money is in the account after 7 years assuming no additional deposits or withdrawls were m

Question 970620: You deposit $750 into a savings account that pays 8% interest compounded yearly. How much money is in the account after 7 years assuming no additional deposits or withdrawls were made?
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
P=Po * {1 + (r/n)}^nt P=money at the end Po= principal at beginning.
P= $750 * {1 + (.08)}^7 n=1, so it does neither affects r/n nor affects nt
{1.08}^7= 1.7138
P=$1285.36
You can't easily check this, but 72/interest rate = time in years it takes money to double.
72/8 = 9 years for doubling.
The money should not have doubled yet, and it hasn't. The formula above works for continuously compounding interest, but it is a rough way to check.
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