Find the amount that results from the investment.
-$1,000 invested at 6% compounded annually after a period of 8 years
A) $1,503.63
B) $593.85
C) $1,689.48
D) $1,593.85

Question

Quizplus · Accepted Answer

The amount resulting from an investment compounded annually is calculated using the formula A = P(1 + r)^n, where A is the amount, P is the principal amount ($1,000), r is the annual interest rate (6% or 0.06), and n is the number of years (8). Plugging in the values, A = $1,000(1 + 0.06)^8 = $1,593.85.

Find the Amount That Results from the Investment