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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 :

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

The value after 6 years is
[tex]A = P(1 + \frac{r}{n} )^{nt}[/tex]
That is,
A = $500*(1 + 0.08)⁶ = $793.44

Answer: $793.44

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