Final answer:
The balance of $10,000.00 deposited in an account earning 8% interest compounded annually for 10 years is calculated using the compound interest formula A = P(1 + r/n)^(nt). The correct answer to the question is a. $21,589.25.
Step-by-step explanation:
To calculate the balance of $10,000.00 deposited in an account earning 8% interest compounded annually for 10 years, we use the formula for compound interest. The formula is A = P(1 + r/n)^(nt), where A is the amount of money accumulated after n years, including interest, P is the principal amount (the initial amount of money), r is the annual interest rate (decimal), n is the number of times that interest is compounded per year, and t is the time the money is invested for in years.
In this case, P is $10,000, r is 0.08 (8%), n is 1 (compounded annually), and t is 10 years. Plugging these values into the formula gives us:
A = $10,000(1 + 0.08/1)^(1*10) = $10,000(1.08)^10
Calculating this value gives us A = $21,589.25. Therefore, the balance in the account after 10 years is $21,589.25. So, the correct answer is a. $21,589.25.