To calculate the future value of $800 at an 8 percent interest rate after six years, we use the formula for compound interest:
Future Value = Principal × (1 + Interest Rate)^Number of Years
Here, the principal is $800, the interest rate is 8 percent (or 0.08), and the number of years is 6.
Plugging in the values:
Future Value = 800 × (1 + 0.08)^6
First, calculate (1 + 0.08):
1 + 0.08 = 1.08
Next, raise 1.08 to the power of 6:
1.08^6 ≈ 1.586874
Now, multiply this result by the principal amount:
800 × 1.586874 ≈ 1269.50
Therefore, the future value of $800 at an 8 percent interest rate after six years is approximately $1,269.50.