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 :

[tex]\qquad \textit{Compound Interest Earned Amount}\\ A=P\left(1+\frac{r}{n}\right)^{nt} \qquad \begin{cases} A=\textit{current amount}\\ P=\textit{original amount deposited}\to &\$3,500\\ r=rate\to 8\%\to \frac{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+\frac{0.08}{1}\right)^{1\cdot 2}\implies 3500(1.08^2)[/tex]

Other Questions