How much interest will he earn after 8 years?

Brennan opened a savings account and deposited $700.00 as principal. The account earns 1% interest, compounded annually. How much interest will he earn after 8 years?

1 Answer
May 20, 2018

$756

Explanation:

The formula you need is this simple interest formula:

#A = P(1 + rt)#

P is the original principal
r is the interest rate
t is the time in years

P =700
r = 1% = 0.01
t = 8

#A = 700(1+0.01*8)#

#A=756#

So $756