Question

If the money and interest are left in the bank how much is the total accumulated savings at the end of the second year for a savings of $3500 at 8% annually compounded interest

Answer 1

`\qquad \textit{Compound Interest Earned Amount}\\ A=P\left(1+(r)/(n)\right)^(nt) \qquad \begin{cases} A=\textit{current amount}\\ P=\textit{original amount deposited}\to &\$3,500\\ r=rate\to 8\%\to (8)/(100)\to &0.08\\ n=\textit{times it compounds per year}\to &1\\ t=years\to &2 \end{cases} \\ \quad \\ A=3500\left(1+(0.08)/(1)\right)^(1\cdot 2)\implies 3500(1.08^2)`