Troy opened a savings account and deposited 700.00 as principal. The account earns 2% interest, compounded annually. What is the balance after 8 years?

Solution

Solution

Amount : 820.16

Solution steps

Translate the problem into an equation:

A = 700 (1 + \frac{0.02}{1})^{1 \cdot 8}

700 (1 + \frac{0.02}{1})^{1 \cdot 8} = 820.16156 \dots

Round to the nearest hundredth:

820.16

Amount : 820.16

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