Answer:
To calculate the total amount of money in the account at the end of two years, we need to use the formula for compound interest:
A = P*(1 + r/n)^(n*t)
where:
A = the total amount of money at the end of the two-year period
P = the initial principal (the amount of the deposit) = $24,000
r = the annual interest rate = 8%
n = the number of times the interest is compounded per year = 1 (compounded annually)
t = the time period, in years = 2
Plugging in the numbers, we get:
A = $24,000 * (1 + 0.08/1)^(1*2)
A = $24,000 * (1.08)^2
A = $24,000 * 1.1664
A = $27,993.60
Therefore, the total amount of money in the account at the end of two years is $27,993.60.
Explanation: