Answer:
C) $1,259.71
Step-by-step explanation:
For this problem, we will be using the equation
A = P(1 + r)^t
Where P is our initial value, in this case, $1,000
r is our interest rate, represented in decimal format, so
8% / 100% = 0.08
t is our time, in this case, 3 years
Let's fill in our variables in the equation
A = 1,000(1 + 0.08)^3
A = 1,000(1.08)^3
A = 1,000(1.25971)
A = 1,259.71
After the three years of compounded annual interest, the savings account with have $1,259.71.
