Respuesta :
A bank offers an annual compound interest rate of 8%. the account has $1,000 in it as of January 2014. Use a calculator if you like. $1080 will be available in the account in January 2015
How do you calculate compound interest using k?
Remember that k is the number of times your interest is compounded annually, and that m is the length of compounding periods during which an investment remains in the account. If the interest on your deposit is compounded monthly, then k=12.
What is the annual compounding formula?
The equation A=P(1+r)t can be used to calculate the amount A you would have after t years if you deposit P dollars in a savings account with an annual interest rate of r and the interest is compounded annually.
Formula we are using here is:
A=P(1+r)t
A= 1000 (1 + [tex]\frac{8}{100}[/tex] ) X 1
= 1000 ([tex]\frac{108}{100}[/tex])
= 1000 X 1.08
= $1080
Learn more about compound interest: https://brainly.com/question/15445273
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