Answer: $ 128,750.09
Step-by-step explanation:
The formula for calculating the Amount when a sum of money is compounded annually is given as :
[tex]A = P(1+r)^{n}[/tex]
where:
[tex]A = amount[/tex]
[tex]P = Principal[/tex]
[tex]r = rate[/tex]
[tex]n = number[/tex] [tex]of[/tex] [tex]years[/tex]
From the question given
[tex]A = ?[/tex]
[tex]P =[/tex] $52,000
[tex]r =[/tex]12% = 0.12
[tex]n= 8[/tex]
substituting into the formula , we have
[tex]A = 52000(1+0.12)^{8}[/tex]
[tex]A= 52000(1.12)^{8}[/tex]
[tex]A = 52000[/tex](2.475963176)
[tex]A= 128750.09[/tex]
Therefore , the amount after 8 years will be $ 128,750.09
