Question

Remember:

B * In
Using the expression above, choose the correct answers for the new balance and the amount of interest earned in the following compound interest problem.
$850 at 8% for 8 years, compounded annually.

Answer 1

`\bf \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 &\$850\\ r=rate\to 8\%\to (8)/(100)\to &0.08\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{annually, means once} \end{array}\to &1\\ t=years\to &8 \end{cases}`