Answer:
Compounded amount after 8 years will be $925.47
Step-by-step explanation:
Ted deposited the amount = $500
Rate of interest = 8% compounded annually.
Time of period for investment = 8 years
By the formula of compound interest,
[tex]C=P(1+\frac{r}{n})^{nt}[/tex]
Where C = compounded amount
P = Principal amount
r = rate of interest
t = Period of investment
n = number of times compounded in a year
[tex]C=500(1+\frac{0.08}{1})^{1\times8}[/tex]
[tex]C=500(1.08)^{8}[/tex]
C = 500×1.8509
C = 925.47
Therefore, compounded amount after 8 years will be $925.47
