Final answer:
To determine what $440 invested at 5.8% interest compounded annually will be worth in 8 years, use the compound interest formula, Future Value = Principal × (1 + Rate)^Time. Plug in the numbers to this formula to find the future amount.
Step-by-step explanation:
The question is about determining the future value of an investment using the formula for compound interest. Given a principal amount of $440 with an annual interest rate of 5.8% compounded annually for 8 years, we can calculate the future value using the compound interest formula: Future Value = Principal × (1 + Rate)^Time. Plugging in the values we get: Future Value = $440 × (1 + 0.058)^8.
Carrying out the calculation:
- First, calculate the growth factor (1 + 0.058) which is 1.058.
- Raise 1.058 to the power of 8 to account for the 8 years of compounding.
- Multiply the original principal of $440 by the result to find the future value.
Once the calculation is complete, you will have the total amount that the $440 will grow to in 8 years with the given interest rate.