SOLUTION: One thousand dollars is invested at 8% interest compounded annually. Determine how much the investment is worth after 1 year.

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Question 596990: One thousand dollars is invested at 8% interest compounded annually. Determine how much the investment is worth after 1 year.
Answer by jim_thompson5910(35256) About Me  (Show Source):
You can put this solution on YOUR website!
A+=+P%281+%2B+r%2Fn%29%5E%28nt%29

A+=+10000%281+%2B+0.08%2F1%29%5E%281%2A1%29

A+=+10000%281+%2B+0.08%29%5E%281%2A1%29

A+=+10000%281+%2B+0.08%29%5E1

A+=+10000%281.08%29%5E1

A+=+10000%281.08%29

A+=+10800

So after one year, you'll have $10,800 in the account.