Answer:
$14,644.63
Step-by-step explanation:
To solve this problem we can use the compound interest formula which is shown below:
[tex]A=P(1+\frac{r}{n} )^{nt}[/tex]
P = initial balance
r = interest rate
n = number of times compounded annually
t = time
First change 12% into a decimal:
12% -> [tex]\frac{12}{100}[/tex] -> 0.12
Lets plug in the values:
[tex]A=5,000(1+\frac{0.12}{12})^{9(12)}[/tex]
[tex]A=14,644.63[/tex]
Tammy will own $14,644.63 after 8 years,