Question

On a deposit of $10,000 that earns 4% compound interest (compounded annually), how much will you have after 8 years?

3,200.00
$13,200.00
$13,604.89
$13,685.69

Answer 1

$13,685.69

Explanation:

A = P (1 + r)ⁿ

A = $10,000 (1 + 0.04)⁸

A = $10,000 x 1.368569

A = $13,685.69