Hello! The forula for compound inerest is P(1 + r)^t, where P = principal, r = rate, and t = time in years. The rate is 6.75% is 0.0675 in decimal form. Let's add 1 to that number in order to get 1.0675. The time amount is 8 years, so we will raise that number to the 8th power. 1.0675^8 is 1.686331954 This is a long decimal, but do not delete it from your calculator. Now, we multiply that by the principal, which is 1,425. When you do, you get 2,403.023035 or 2,403.02 when rounded to the nearest hundredth. The total amount after 8 years is $2,403.02.
