it could mean
1. simple interest
2. compound interest
1.simple interest
so just 8% of that 700 is added on
find 8% of 700
8% of 700=0.08 times 700=0.56
6 years=0.56 times 6=3.36
add
3.36+700=703.36
2. compound interst
that means the each year, it gives you 8% on that new thing
so
8%=0.08
so each year, it is multiplied by 1.08 since you add the original (1) to the 8% 0.08
so
6 years means
700 times 1.08^6=700 times 1.08 times 1.08 times 1.08 times 1.08 times 1.08 times 1.08=1110.81
answers are
if simple interest=$703.36
if compound interst=$1110.81
