Paula opened a savings account and deposited $700 as a principal the account earns 8% interest compounded annually what is the balance after three years

Answer: the balance after three years is $882

Step-by-step explanation:

We would apply the formula for determining compound interest which is expressed as

A = P (1 + r/n) ^nt

Where

A = total amount in the account at the end of t years

r represents the interest rate.

n represents the periodic interval at which it was compounded.

P represents the principal or initial amount deposited

From the information given,

P = $700

r = 8% = 8/100 = 0.08

n = 1 because it was compounded once in a year.

t = 3 years

Therefore,

A = 700 (1 + 0.08/1) ^1 * 3

A = 700 (1.08) ^3

A = $882