Question

Iman has $800 in a savings account that earns 6% simple interest. Findthe total account balance after 8 years.

Answer 1

SOLUTION

Given the question in the question tab, the following are the solution steps to find the total account balance after 8 years.

Step 1: Write the formula for calculating the simple interest

$A=P(1+\frac{RT}{100})$

where P is the amount saved

R is the interest rate

T is the time

Step 2: Write the given parameters

$P=800,R=6,T=8$

Step 3: Calculate the amount after 8 years using the formula in step 1

$\begin{gathered} A=800(1+\frac{8\times6}{100}) \\ A=800(1+\frac{48}{100}) \\ A=800(1.48) \\ A=\text{\ }1184 \end{gathered}$

Hence, the total account balance after 8 years is $1184