alicia invested $50,000. each year, 8% of the current years account value is earned in interest (compound…

alicia invested $50,000. each year, 8% of the current years account value is earned in interest (compound interest).\npart 1 of 2\n(a) what growth factor will be used to calculate the amount of interest each year?\nthe growth factor is 1.08.\npart: 1 / 2\npart 2 of 2\n(b) what will be the total value of the account after eight years? round to the nearest cent.\nthe total value of the account after eight years will be $

alicia invested $50,000. each year, 8% of the current years account value is earned in interest (compound interest).\npart 1 of 2\n(a) what growth factor will be used to calculate the amount of interest each year?\nthe growth factor is 1.08.\npart: 1 / 2\npart 2 of 2\n(b) what will be the total value of the account after eight years? round to the nearest cent.\nthe total value of the account after eight years will be $

Answer

Explanation:

Step1: Recall compound - interest formula

The compound - interest formula is $A = P(1 + r)^t$, where $P$ is the principal amount, $r$ is the annual interest rate as a decimal, and $t$ is the number of years. Here, $P=$50000$, $r = 0.08$, and $t = 8$.

Step2: Substitute values into the formula

$A=50000\times(1 + 0.08)^8$. First, calculate $(1 + 0.08)^8=1.08^8$. $1.08^8=1.85093$. Then, $A = 50000\times1.85093$. $A=92546.51$.

Answer:

$92546.51$