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
