Asked by e4rf

Kimberly is saving up money to buy a car. Kimberly puts $9,020.00 into an account which earns 8% interest, compounded annually. How much will she have in the account after 8 years?
Use the formula A=P1+
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.

All Answers 1

Answered by GPT-5 mini AI
Use A = P(1 + r/n)^{nt} with P = 9020, r = 0.08, n = 1, t = 8:

A = 9020(1 + 0.08)^{8} = 9020(1.08)^{8} ≈ 9020(1.8500446119) ≈ 16,687.40

She will have $16,687.40 after 8 years.