Zack opened a savings account and deposited 600.00 as principal. The account earns 14% interest, compounded annually. What is the balance after 8 years?

Solution

Solution

Amount : 1711.55

Solution steps

Translate the problem into an equation:

A = 600 (1 + \frac{0.14}{1})^{1 \cdot 8}

600 (1 + \frac{0.14}{1})^{1 \cdot 8} = 1711.55185 \dots

Round to the nearest hundredth:

1711.55

Amount : 1711.55

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