Question

you are given the principal in a bank at the beginning of the year and a rate of interest that is compounded annually. calculate the amount in the account at the end of the year. $8,000; 7%what is the amount of money after t = 1 year?

Answer 1

Given:

Principal(P)= $8000 (Initial value)

rate(r) =0.07

time(t) = 1

n = 1 (number of time the interest is compounded)

Using the formula below:

`A=P(1+(r)/(n))^(nt)`

Substitute the values and evaluate.

`A=8000(1+(0.07)/(1))^(1*1)`
`=8000(1+0.07)`
`=8000(1.07)`
`=8560`

Therefore, the amount of money after t = 1 year is $8560.