Question 1174965
f = p * (1 + r) ^ n
f is the future value
p is the present value
r is he interest rate per time period
is the number of time periods.


in this problem, the time periods are in months.


the number of months is 1 year * 12 = 12 months.
the interest rate per month is 18% per year divided by 12 = 18/12% = 1.5% per month.


the formula becomes:


f = 800 * (1 + .015) ^ 12 = 956.4945372.


the amount of money owed at the end of 1 year is 956.49 rounded to the nearest penny.


in this formula, the rate is used, not the percent.
rate = percent / 100.