Find the balance in each account after the given period. $8000 principal earning 5% compounded annually, after 6 yr

Hi there! The formula for finding compound interest is P(1 + r)^t, with P = principal (initial amount), r = rate (interest rate), and t = time in years. First off, let's add 1 to the percentage rate in decimal form. 5% is 0.05 as a decimal. 1 + 0.05 is 1.05. Now, because we are looking for the amount after 6 years, we will raise that decimal to the 6th power. 1.05^5 is 1.34009564062. This is a long decimal, but do not delete it from your calculator. You must multiply that number by the principal, which is 8,000. When you multiply the numbers together, you get 10,720.765125 or 10,720.77 when rounded to the nearest hundredth. There. The balance of the account after 6 years is $10.720.77.