Answer: 9,600
Step-by-step explanation:
I could possibly did wrong but I shall explain this none the less. I first knew that 10% of 16,000 was 1,600. So then I just timed that by four getting 6,400. I then did 16,000-6,400 getting $9,600. Sorry if I’m wrong
The equation used for this problem is
F = P(1+i)ⁿ
where
F is the future worth
P is the present worth
i is the effective interest rate
n is the number of years
Substituting the values,
F = <span>$8,000(1 + 0.03)</span>⁴
F = $9,004.07
Thus, after 4 years, Aaron will have $9,004.07.
We need to see the exercise 3 first
