Answer:
[tex]A(t) = 600(1.035)^8[/tex]
The ending balance is of $790.1.
Step-by-step explanation:
Compound interest:
The amount of money earned after t years, in compound interest, is given by:
[tex]A(t) = A(0)(1+r)^{t}[/tex]
In which A(0) is the initial amount of money and r is the interest rate, as a decimal.
$600 that earns 3.5% compound interest over 8 years
This means, respectively, that:
[tex]A(0) = 600, r = 0.035, t = 8[/tex]
So, the formula is:
[tex]A(t) = A(0)(1+r)^{t}[/tex]
[tex]A(t) = 600(1+0.035)^{8}[/tex]
[tex]A(t) = 600(1.035)^8[/tex]
Ending balance:
The ending balance is:
[tex]A(t) = 600(1.035)^8 = 790.1[/tex]
The ending balance is of $790.1.
