Question

You deposit $500 in an account that pays 8% annual interest compounded yearly. What is the account balance after six years? Formula: A=C(1+r)t

Answer 1

Principal, P = $500
r =8% = 0.08, the interest rate
n = 1, the compounding interval
t = 6 years

The value after 6 years is

`A = P(1 + (r)/(n) )^(nt)`
That is,
A = $500*(1 + 0.08)⁶ = $793.44

Answer: $793.44