Answer:
[tex] A = 1986(1+ \frac{0.063}{12})^{12*8} =3283.153[/tex]
So then after 8 years we will have in the account 3283.153
And in order to find the interest we can do the following operation:
[tex] I = 3283.153 -1986 = 1297.153[/tex]
Step-by-step explanation:
For this case we can use the formula for the future value using compound interest given by:
[tex] A = P (1+ \frac{r}{n})^{nt}[/tex]
Where P= 1986 the initial amount invested. r = 0.063 represent the interest rate. n=12 represent the number of times that the rate is compounded in a year. And t =8 years . Replacing the info we got:
[tex] A = 1986(1+ \frac{0.063}{12})^{12*8} =3283.153[/tex]
So then after 8 years we will have in the account 3283.153
And in order to find the interest we can do the following operation:
[tex] I = 3283.153 -1986 = 1297.153[/tex]
