Answer:
$2,519.42
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
First, lets change 8% into a decimal:
8% -> [tex]\frac{8}{100}[/tex] -> 0.08
Now lets plug the values into the equation:
[tex]A=2,000(1+\frac{0.08}{1})^{1(3)}[/tex]
[tex]A=2,519.42[/tex]
Your answer is $2,519.42
