Answer:
$10,244.14 after 12 years
Explanation:
To solve this problem, we can use the formula for compound interest:
A = P(1 + r/n)^(n*t)
A = the final amount of the investment
P = the principal amount ($4200 in this case)
r = the annual interest rate (8% or 0.08 as a decimal)
n = the number of times the interest is compounded per year (once annually in this case)
t = the number of years the money is invested (12 years in this case)
Substituting the given values into the formula, we get:
A = 4200(1 + 0.08/1)^(1*12)
A = 4200(1.08)^12
A = 4200(2.44140625)
A = $10,244.14 (rounded to the nearest cent)