You deposit $500 in an account earning 8% interest compounded annually. How much will you have in the account in 15 years?
To calculate the amount you will have in the account in 15 years, you can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the final amount in the account
P = the principal amount (initial deposit)
r = annual interest rate (in decimal form)
n = number of times compounded per year
t = number of years
In this case, the principal amount is $500, the annual interest rate is 8% (or 0.08 in decimal form), the account is compounded annually, and the number of years is 15.
Using the formula:
A = 500(1 + 0.08/1)^(1*15)
A = 500(1 + 0.08)^15
A = 500(1.08)^15
A ≈ $1504.43
Therefore, you will have approximately $1504.43 in the account in 15 years.