Final answer:
The balance will be $32,780.88 after 8 years.
Step-by-step explanation:
To calculate the balance, we can use the formula for compound interest: A = P(1 + r/n)^(nt), where A is the final amount, P is the principal amount, r is the annual interest rate, n is the number of times interest is compounded per year, and t is the number of years.
In this case, the principal amount is $25,000, the annual interest rate is 5% (or 0.05), and the interest is compounded annually. So, the formula becomes:
A = 25000(1 + 0.05/1)^(1*8)
Calculating this equation, we find that the balance will be $32,780.88 after 8 years