Max puts 700.00 into an account to use for school expenses. The account earns 14% interest, compounded annually. How much will be in the account after 8 years?

Solution

Solution

Amount : 1996.81

Solution steps

Translate the problem into an equation:

A = 700 (1 + \frac{0.14}{1})^{1 \cdot 8}

700 (1 + \frac{0.14}{1})^{1 \cdot 8} = 1996.81049 \dots

Round to the nearest hundredth:

1996.81

Amount : 1996.81

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