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

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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) About Me  (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
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Total balance = $583.20
Total interest = $83.20
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Cheers,
Stan H.
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