# What Will Your $440 Be Worth in 8 Years?

**Question:**Your $440 gets 5.8% compounded annually for 8 years. What will your $440 be worth in 8 years?

**Final answer:**Your $440 will be worth approximately $700.13 in 8 years.

## Understanding Compound Interest:

Compound interest is a concept where interest is calculated on the initial principal amount, including all previously accumulated interest. This results in the total amount growing at an increasing rate over time.

## Calculating Final Amount:

To calculate the final amount after 8 years of 5.8% annual compound interest on $440, we can use the compound interest formula:

**A = P(1 + r/n)^(nt)**

Where:

**A**is the final amount**P**is the principal amount ($440)**r**is the annual interest rate (5.8%)**n**is the number of times interest is compounded per year (annually)**t**is the number of years (8 years)

## Plugging in Values:

Substitute the given values into the formula:

**A = $440(1 + 0.058/1)^(1*8)**

## Calculating Final Worth:

Simplify and calculate the equation:

**A = $440(1.058)^8**

**A = $440(1.593848)**

**A ≈ $700.13**

Therefore, your $440 will be worth approximately $700.13 in 8 years with compound interest.