Answer:
he investment will be worth $12,653 in 8 years if the initial investment of $10,000 earns 3% interest compounded monthly.
Explanation:
To solve this problem, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
where:
A is the amount of money at the end of the investment period
P is the initial amount invested (the principal)
r is the interest rate (as a decimal)
n is the number of times the interest is compounded per year
t is the number of years
In this case, we have P = $10,000, r = 0.03 (since the interest rate is 3%), n = 12 (since the interest is compounded monthly), and t = 8.
Plugging these values into the formula, we get:
A = $10,000(1 + 0.03/12)^(12*8)
= $10,000(1.0025)^96
= $10,000(1.2653)
= $12,653
Therefore, the investment will be worth $12,653 in 8 years if the initial investment of $10,000 earns 3% interest compounded monthly.