bridgette puts $800.00 into an account to use for school expenses. the account earns 12% interest…

bridgette puts $800.00 into an account to use for school expenses. the account earns 12% interest, compounded annually. how much will be in the account after 8 years? use the formula $a = p(1+\frac{r}{n})^{nt}$, where $a$ is the balance (final amount), $p$ is the principal (starting amount), $r$ is the interest rate expressed as a decimal, $n$ is the number of times per year that the interest is compounded, and $t$ is the time in years. round your answer to the nearest cent.

bridgette puts $800.00 into an account to use for school expenses. the account earns 12% interest, compounded annually. how much will be in the account after 8 years? use the formula $a = p(1+\frac{r}{n})^{nt}$, where $a$ is the balance (final amount), $p$ is the principal (starting amount), $r$ is the interest rate expressed as a decimal, $n$ is the number of times per year that the interest is compounded, and $t$ is the time in years. round your answer to the nearest cent.

Answer

Explanation:

Step1: Identify values

$P = 800$, $r=0.12$, $n = 1$, $t = 8$

Step2: Substitute values into formula

$A=800\left(1+\frac{0.12}{1}\right)^{1\times8}$

Step3: Simplify the expression inside parentheses

$1+\frac{0.12}{1}=1 + 0.12=1.12$

Step4: Calculate the exponentiation

$1.12^{8}\approx2.475963176$

Step5: Multiply by principal

$A = 800\times2.475963176\approx1980.77$

Answer:

$1980.77$