I just want to make sure that I have my concept down properly.
The generic formula is given: A=amount, P=principal, r=interest rate, n=times annually compounded and t=duration of time.
So for question:
If interest is compounded annually, how much is $1000 worth in 8 years at 8%?
P=1000, r=.08, n=1, and t=8.
Other than being a preposterous interest rate for a cash deposit, am I correctly working this problem?