rosanne puts $6,000.00 into an account to use for school expenses. the account earns 12% interest…

rosanne puts $6,000.00 into an account to use for school expenses. the account earns 12% interest, compounded annually. how much will be in the account after 8 years? use the formula $a = p(1+\frac{r}{n})^{nt}$, where $a$ is the balance (final amount), $p$ is the principal (starting amount), $r$ is the interest rate expressed as a decimal, $n$ is the number of times per year that the interest is compounded, and $t$ is the time in years. round your answer to the nearest cent.

rosanne puts $6,000.00 into an account to use for school expenses. the account earns 12% interest, compounded annually. how much will be in the account after 8 years? use the formula $a = p(1+\frac{r}{n})^{nt}$, where $a$ is the balance (final amount), $p$ is the principal (starting amount), $r$ is the interest rate expressed as a decimal, $n$ is the number of times per year that the interest is compounded, and $t$ is the time in years. round your answer to the nearest cent.

Answer

Explanation:

Step1: Identify the values

$P = 6000$, $r=0.12$, $n = 1$, $t = 8$

Step2: Substitute into formula

$A=6000\left(1+\frac{0.12}{1}\right)^{1\times8}=6000\times(1 + 0.12)^{8}$

Step3: Calculate the value

$(1 + 0.12)^{8}=1.12^{8}\approx2.475963176$ $A = 6000\times2.475963176\approx14855.78$

Answer:

$14855.78$