Question

Aaron deposits $8,000 into an account that earns 3% interest, compounded Annually. How much money will he have after 4 years

PLEASE HELP 60 POINTS FOR THE RIGHT ANSWER SHOW WORK

Answer 1

The equation used for this problem is

F = P(1+i)ⁿ
where
F is the future worth
P is the present worth
i is the effective interest rate
n is the number of years

Substituting the values,

F = $8,000(1 + 0.03)⁴
F = $9,004.07

Thus, after 4 years, Aaron will have $9,004.07.