Answer:
$821.14
Step-by-step explanation:
To solve this problem, lets use the compound interest formula:
[tex]A=P(1+\frac{r}{n} )^{nt}[/tex]
P = initial balance
r = interest rate (decimal)
n = number of times compounded annually
t = time
The first step is to change 4% into a decimal:
4% -> [tex]\frac{4}{100}[/tex] -> 0.04
Next, lets plug in the values:
[tex]A=600(1+\frac{0.04}{1})^{1(8)}[/tex]
[tex]A=821.14[/tex]
The account balance after 8 years will be $821.14
