Answer: $78150 would be in the account after 8 years
Step-by-step explanation:
We would apply the formula for determining compound interest which is expressed as
A = P(1+r/n)^nt
Where
A = total amount in the account at the end of t years
r represents the interest rate.
n represents the periodic interval at which it was compounded.
P represents the principal or initial amount deposited
From the information given,
P = $65,000
r = 2.3% = 2.3/100 = 0.023
n = 12 because it was compounded 12 times in a year.
t = 8 years
Therefore,.
A = 65000(1 + 0.023/12)^12 × 18
A = 65000(1 + 0.00192)^96
A = 65000(1.00192)^96
A = $78150
