Final answer:
The balance will be approximately $17,180.32 after 8 years.
Step-by-step explanation:
To calculate the balance after 8 years with an initial investment of $10,000 at an annual interest rate of 7% compounded annually, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A is the balance after t years
P is the principal amount, which is $10,000
r is the annual interest rate in decimal form, which is 0.07
n is the number of compounding periods per year, which is 1 since it is compounded annually
t is the time in years, which is 8.
Plugging in these values, we get:
A = 10000(1 + 0.07/1)^(1*8)
A = 10000(1.07)^8
A = 10000(1.718)
A ≈ $17,180.32