Question

When you were 10 years old, your grandparents put $500 into an account for you paying 7 percent interest. now that you are 18 years old, your grandparents tell you that you can take the money out of the account. what is the balance to the nearest cent? a. $1,111.77 b. $983.58 c. $1,200.00 d. $859.09?

Answer 1

Formula for CI = p (1+r/100)t

Substituting the given values, we get

Cl = 500 ( 1 + 7 / 100) 8

Cl = 859 .09

The answer is 859.09