Josephine deposited 8,000 in an account that pays 6% compounded annually. What is her investment at the end of 3 years
To calculate Josephine's investment at the end of 3 years with 6% compounded annually, you can use the formula for compound interest:
A = P(1 + r/n)^(n*t)
Where:
A = the final amount after t years
P = the principal amount (initial deposit)
r = the annual interest rate (as a decimal)
n = the number of times interest is compounded per year
t = the number of years
In this case, Josephine deposited $8,000, the interest rate is 6% (or 0.06 as a decimal), and the interest is compounded annually (n = 1). We want to find the investment after 3 years.
Plugging these values into the formula:
A = 8000(1 + 0.06/1)^(1*3)
A = 8000(1 + 0.06)^3
A = 8000(1.06)^3
A ≈ 8000(1.191016)
A ≈ $9,528.13
Josephine's investment at the end of 3 years would be approximately $9,528.13.