calculate the compound interest

Question

How much would $550 invested at 9% interest compounded annually be worth after 8 years?

Answer 1

Elmo, what's the formula?

 

A = P(1 + r/n)^nt

 

P is the principle

r is the rate as a decimal

n is the number of times per year compounded

t is the number of years

 

A = 550(1 + .09/1)¹⁽⁸⁾

 

Put that in your calculator for your answer!