Luke deposits $650 into a savings account that earns 4% interest per year. How much money will be in his account after 8 years?

1 Answer
Feb 8, 2018

This question needs annual formula as the principle will be new every year
The formula is....
#p[1+r/100]^t#
Where p is principle.... #$650# in this case
r is rate..... #4%# in this case
t is time....... #8# years in this case
#650[1+4/100]^8#
#650[cancel104^26/cancel100^25]^8#
#cancel650^26xx26/cancel25xx26/25xx26/25xx26/25xx26/25xx26/25xx26/25xx26/25#
#26xx26xx26/25xx26/25xx26/25xx26/25xx26/25xx26/25xx26/25#

You must know as of now..... that it can't be just done like that...... we're not calculators... so we'll just assume #26/25=1# as it is almost same and that #1.00# is not much far from #1.04#

Multiply #26# and #26# and take it all as one
#676xx1xx1xx1xx1xx1xx1xx1#
#676#

The real answer.... I checked... will be
#889.5#... It is actually far away from the answer we took out but.... as I said earlier.... we're not calculators