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

To calculate the amount of money you would have at the end of the eight years with compound interest, we can use the formula:

A = P(1 + r/n)^(nt)

Where:
A = amount at the end of the period
P = initial principal (in this case, $1,000.00)
r = annual interest rate (7%)
n = number of times interest is compounded per year (assume once a year)
t = number of years

Plugging in the values, we get:

A = 1000(1 + 0.07/1)^(1*8)
A = $1,718.19

Therefore, at the end of the eight years, you would have $1,718.19.

You Deposit $1,000