Answer:
The balance after 6 years is $1110.812026
Step-by-step explanation:
The rule of the compound interest is A = P[tex](1+\frac{r}{n})^{nr}[/tex], where
- r is the interest rate in decimal
- n is the number of periods
∵ Layla opened a savings account and deposited $700.00 as principal.
∴ P = 700
∵ The account earns 8% interest compounded annually
∴ r = 8% = 8 ÷ 100 = 0.08
∴ n = 1 ⇒ compounded annually
∵ The time is 6 years
∴ t = 6
→ Substitute these values in the rule above
∵ A = 700[tex](1+\frac{0.08}{1})^{1(6)}[/tex]
∴ A = 700[tex](1.08)^{6}[/tex]
∴ A = 1110.812026
∴ The balance after 6 years is $1110.812026
