Find the balance in the account after the given period. $2000 principal earning 6% compounded annually, for 8 years. The balance after 8 years will be $__?
For this case we use the following formula: P (t) = P (1 + r / n) ^ (n * t) Substituting values we have: P (8) = 2000 * (1 + 0.06 / 1) ^ (1 * 8) P (8) = 3187.696149 Rounding off we have: P (8) = 3187.7 $ Answer: The balance after 8 years will be $ 3187.7
