Answer: he will have $12720 after 15 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 = $8000
r = 3.1% = 3.1/100 = 0.031
n = 12 because it was compounded 12 times in a year.
t = 15 years
Therefore,
A = 8000(1 + 0.031/12)^12 × 15
A = 8000(1 + 0.00258)^180
A = 8000(1.00258)^180
A = $12720
