Question

Your principal amount is $450 your interest rate is 6% and your time is 8 years what is your interest earned after eight years what is your new total amount earned after 8 years

Answer 1

Explanation:

6

Answer 2

Results are below.

Explanation:

Giving the following information:

Principal= $450

Number of periods= 8 years

Interest rate= 6%

We will determine the interest earned and future value using simple interest and compound interest:

Simple interest:

I= P*r*t

I= 450*0.06*8= $216

Total Future Value= I + P

Total Future Value= 216 + 450= $666

Compound interest:

I= [P*(1+r)^t] - P

I= [450*(1.06^8)] - 450= $267.23

Total Future Value= P*(1+r)^t

Total Future Value= 450*1.06^8

Total Future Value= $717.23