Pat invested x dollars in a fund that paid 8 percent annual interest, compounded annually. Which of the following represents the value, in dollars, of Pat's investment plus interest at the end of 5 years?
Pat would receive within 5 years $1.47 for each dollar invested.
Explanation:
Compounded interest is when the final capital is calculated with the interest that is paid at the end of each period over the capital plus the interest earned in the prior period.
