You deposit $1,000.00 into an asset that pays 7% annual interest for eight years.At the end of the eight years,you would have:

Question

Quizplus · Accepted Answer

Using the formula for compound interest, we can find the balance after 8 years:

Balance = Principal x (1 + interest rate)^n

where n is the number of years.

Plugging in the values from the problem, we get:

Balance = $1,000 x (1 + 0.07)^8
Balance = $1,000 x 1.7138
Balance = $1,713.80

Therefore, at the end of 8 years, you would have $1,713.80 in the asset. The closest option is C, which is $1,718.19.

You Deposit $1,000