Question

Suppose your​  friend's

parents invest  $ 20000 in an account paying 7 % compounded annually. What will the balance be after 8 years?

Answer 1

i’m not sure

Explanation:

Answer 2

Each year, the current balance is multiplied by 1.07.

After 8 years, we'll have multiplied it by 1.07 eight times.

This can be written as


`20000*1.07^8`, which has a value of $34363.72, to the nearest cent.