Step-by-step explanation
If Hunter has $300 in savings and the interest rate is 8%, compounded annualy, we can apply the following equation:
Where, P=Principal=300, r=rate (in decimal form) = 8/100 = 0.08, n=number of compounded times = 1 and t = time = 3
Substituting terms:
Adding numbers:
Computing the powers:
Multiplying numbers:
In conclusion, there will be 378.00 in three years