Question

Jenny invest $1000 at a rate of 12.5% that compounds annually for eight years the future value of the investment can be calculated Hal

Answer 1

Answer:

$\ 2,565.78$    

Step-by-step explanation:

we know that    

The compound interest formula is equal to  

$A=P(1+\frac{r}{n})^{nt}$  

where  

A is the Final Investment Value  or Future Value

P is the Principal amount of money to be invested  

r is the rate of interest  in decimal

t is Number of Time Periods  

n is the number of times interest is compounded per year

in this problem we have  

$t=8\ years\\ P=\ 1,000\\ r=12.5\%=12.5/100=0.125\\n=1$  

substitute in the formula above

$A=1,000(1+\frac{0.125}{1})^{1*8}$

$A=1,000(1.125)^{8}$

$A=\ 2,565.78$