If you receive $1000 for your birthday and decide to invest it in an account earning 8% compound interest, how much will you have in 5 years when you graduate high school?
A. $400
B. $1400
C. $1469.32
D. $18,895.68
E. $1327.68
Annual compounding is assumed.
P = Po(1+0.08) = 1000(1.08)^5 =