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

Question

Quizplus · Accepted Answer

Using the compound interest formula A=P(1+r/n)^(nt), where A is the amount, P is the principal, r is the annual interest rate, n is the number of times the interest is compounded per year, and t is the time in years, we can calculate the amount you would have at the end of eight years:
A = 1000(1+0.07/1)^(1*8)
A = $1,718.19
Therefore, the best choice is C, as it is the amount you would have at the end of eight years with compound interest.

You Deposit $1,000