Tankim has $4,000 in his savings account, which pays an annual interest rate of 2%. The value of his account at the end of eight years is:

Question

Quizplus · Accepted Answer

The value of Tankim's account at the end of eight years can be calculated using the formula for compound interest: A = P(1 + r/n)^(nt), where A is the amount of money accumulated after n years, including interest, P is the principal amount ($4,000), r is the annual interest rate (2% or 0.02), n is the number of times that interest is compounded per year, and t is the time the money is invested for in years. Assuming the interest is compounded annually (n = 1), the formula simplifies to A = 4000(1 + 0.02)^8, which calculates to approximately $4,686.64.

Tankim Has $4,000 in His Savings Account, Which Pays an Annual