You deposit $500 in an account earning 8% interest compounded annually. How much will you have in the account in 15 years?

Answer 1

To calculate the amount you will have in the account in 15 years, you can use the formula for compound interest:

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

Where:
A = the final amount in the account
P = the principal amount (initial deposit)
r = annual interest rate (in decimal form)
n = number of times compounded per year
t = number of years

In this case, the principal amount is $500, the annual interest rate is 8% (or 0.08 in decimal form), the account is compounded annually, and the number of years is 15.

Using the formula:

A = 500(1 + 0.08/1)^(1*15)
A = 500(1 + 0.08)^15
A = 500(1.08)^15
A ≈ $1504.43

Therefore, you will have approximately $1504.43 in the account in 15 years.