Answer:
Results are below.
Step-by-step explanation:
Giving the following information:
Principal= $450
Number of periods= 8 years
Interest rate= 6%
We will determine the interest earned and future value using simple interest and compound interest:
Simple interest:
I= P*r*t
I= 450*0.06*8= $216
Total Future Value= I + P
Total Future Value= 216 + 450= $666
Compound interest:
I= [P*(1+r)^t] - P
I= [450*(1.06^8)] - 450= $267.23
Total Future Value= P*(1+r)^t
Total Future Value= 450*1.06^8
Total Future Value= $717.23
