Question
What will the final balance be for $268 invested at 8% compounded annually for four years?
Answers
GPT 3.5
To calculate the final balance after four years with an 8% annual interest rate compounded annually, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the final balance after t years
P = the principal investment amount ($268)
r = the annual interest rate (8% or 0.08)
n = the number of times the interest is compounded per year (1 for annually)
t = the number of years the money is invested for (4 years)
Plugging in the values:
A = $268(1 + 0.08/1)^(1*4)
A = $268(1.08)^4
A = $268(1.36049)
A = $364.18
Therefore, the final balance after four years with an 8% annual interest rate compounded annually will be $364.18.
A = P(1 + r/n)^(nt)
Where:
A = the final balance after t years
P = the principal investment amount ($268)
r = the annual interest rate (8% or 0.08)
n = the number of times the interest is compounded per year (1 for annually)
t = the number of years the money is invested for (4 years)
Plugging in the values:
A = $268(1 + 0.08/1)^(1*4)
A = $268(1.08)^4
A = $268(1.36049)
A = $364.18
Therefore, the final balance after four years with an 8% annual interest rate compounded annually will be $364.18.