$253.56
Given:
Question:
What is the final amount?
The Process:
Compound interest is the interest earned from the initial amount and the interest earned previously. The formula for the balance A of the savings with compound interest is
[tex]\boxed{ \ A = P(1 + \frac{r}{n})^{nt} \ }[/tex]
Let us calculate the final amount.
[tex]\boxed{ \ A = 35(1 + \frac{0.08}{4})^{(4)(25)} \ }[/tex]
[tex]\boxed{ \ A = 35(1.02)^{100} \ }[/tex]
[tex]\boxed{ \ A = 35 \times 7.244646 \ }[/tex]
[tex]\boxed{ \ A = 253.56261 \approx 253.56 \ }[/tex]
Thus the final amount that is put into a savings account for 25 years is $253.56
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