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Savings Account Interest Calculation

The document describes how to calculate the amount of money in a savings account after one year if $100 is deposited earning 8% interest compounded annually; the calculation is that the $100 is multiplied by 1.08 to get $108 after one year.

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rook semay
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10 views1 page

Savings Account Interest Calculation

The document describes how to calculate the amount of money in a savings account after one year if $100 is deposited earning 8% interest compounded annually; the calculation is that the $100 is multiplied by 1.08 to get $108 after one year.

Uploaded by

rook semay
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

If Fred Moreno places $100 in a savings account paying 8% interest compounded annually, how

much will he have in the account at the end of one year?

Solution:

$100 x (1.08)1 = $100 x FVIF8%,1

$100 x 1.08 = $108

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