Suppose you invest $1 comma 1001,100 in an account paying 8 %8% interest per year. a. What is the balance in the account after 33 years? How much of this balance corresponds to "interest on interest"? b. What is the balance in the account after 3333 years? How much of this balance corresponds to "interest on interest"?
Added by John S.
Step 1
- \( P \) is the principal amount (the initial amount of money). - \( r \) is the annual interest rate (decimal). - \( t \) is the number of years the money is invested or borrowed. Given: - Principal \( P = 1,100 \) - Annual interest rate \( r = 8\% = 0.08 Show more…
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