Richard opened a savings account and deposited 800.00 as principal. The account earns 15% interest, compounded annually. How much interest will he earn after 8 years?

Solution

Solution

Interest : 1647.22

Solution steps

Translate the problem into an equation:

2447.21829 \dots = 800 + I

Solve for

I, 2447.21829 \dots = 800 + I : I = 1647.22

Interest : 1647.22

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