Suppose your friend's parents invest $ 10 comma 000 in an account paying 4 % compounded annually. What will the balance be after 8 years?Question content area bottomPart 1The account balance will be $enter your response here(Round to the nearest cent as needed.)

Question

Suppose your​ friend's parents invest $ 10 comma 000 in an account paying 4 % compounded annually. What will the balance be after 8 ​years?Question content area bottomPart 1The account balance will be ​$enter your response here​(Round to the nearest cent as​ needed.)

GPT-4o mini · Answer

To find the balance of an investment with compound interest, you can use the formula:

\[ A = P(1 + r)^n \]

Where:

$ A $ is the amount of money accumulated after n years, including interest.
$ P $ is the principal amount (the initial amount of money).
$ r $ is the annual interest rate (decimal).
$ n $ is the number of years the money is invested or borrowed.

For your friend's parents:

$ P = 10,000 $
$ r = 0.04 $ (4% as a decimal)
$ n = 8 $

Now plugging in the values:

\[ A = 10000(1 + 0.04)^8 \] \[ A = 10000(1.04)^8 \] \[ A \approx 10000 \times 1.3685696 \] \[ A \approx 13685.70 \]

So the balance after 8 years will be approximately $13,685.70 (rounded to the nearest cent).

Suppose your​ friend's parents invest $ 10 comma 000 in an account paying 4 % compounded annually. What will the balance be after 8 ​years?Question content area bottomPart 1The account balance will be ​$enter your response here​(Round to the nearest cent as​ needed.)

Suppose your friend's parents invest $ 10 comma 000 in an account paying 4 % compounded annually. What will the balance be after 8 years?Question content area bottomPart 1The account balance will be $enter your response here(Round to the nearest cent as needed.)