I invest $8000 at 8.5% p.a , after 6 years, how much would I have in total in a compounded yearly interest account?

To calculate the total amount in a compound interest account, we use the compound interest formula:

\[
A = P \left(1 + \frac{r}{n}\right)^{nt}
\]

Where:
- $A$ is the total amount after interest.
- $P$ is the principal (initial investment), which is $8000.
- $r$ is the annual interest rate, which is 8.5% or 0.085.
- $n$ is the number of times the interest is compounded per year (in this case, it's compounded yearly, so $n = 1$).
- $t$ is the number of years the money is invested, which is 6 years.

Now, plugging in the values:

\[
A = 8000 \left(1 + \frac{0.085}{1}\right)^{1 \times 6}
\]
\[
A = 8000 \left(1.085\right)^6
\]

I'll calculate the result.

After 6 years, your total investment would grow to approximately **$13,051.74** in a compound interest account at an annual interest rate of 8.5%.

Would you like further details on how this was calculated or have any other questions?

Here are some related questions you might find useful:
1. What is the difference between compound and simple interest?
2. How would the amount change if the interest was compounded monthly?
3. How does changing the interest rate affect the final amount?
4. What would the investment be worth after 10 years?
5. How can I calculate the total interest earned separately?

**Tip:** Compound interest grows faster the more frequently it is compounded.

I invest $8000 at 8.5% p.a, after 6 years, how much would I have in total in a compounded yearly interest account?

Learn how to calculate compound interest for an $8000 investment at 8.5% annual interest over 6 years. This problem uses the compound interest formula, focusing on exponential growth concepts in finance. Suitable for Grades 10-12.

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