Answer:
$41,734
Step-by-step explanation:
To solve this problem, we use the compound interest formula:
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
where
A is the total amount received
P is the principal
r is the interest rate
n is the number of times interest is coumpounded per unit time
t is the time
In our problem:
P=$23,400 is the principal
r = 7.5 % = 0.075 is the interest rate
n = 1 (annual interest)
t = 8 (8 years)
Substituting,
[tex]A=(23,400)(1+\frac{0.075}{1})^{(1)(8)}=41734[/tex]
So, I will receive $41,734 after 8 years.
