Answer: Choice A) $4500.33
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Explanation:
The formula you'll use is
F = P*(1+r)^t
where
F = final amount
P = initial amount
r = growth rate (in decimal form)
t = time in years
In this case,
F = unknown (this is what we're trying to figure out)
P = 3046
r = 0.05 (since 5% = 5/100 = 0.05)
t = 8
Plug those three known values into the formula and evaluate
F = P*(1+r)^t
F = 3046*(1+0.05)^8
F = 3046*(1.05)^8
F = 3046*1.4774554
F = 4500.3291484
F = 4500.33 ... round to the nearest penny
