Answer:
$17,685.45
Step-by-step explanation:
We will use the compound interest formula to solve this:
[tex]A=P(1+\frac{r}{n} )^{nt}[/tex]
P = initial balance
r = interest rate (decimal)
n = number of times compounded annually
t = time
The first step is to change 12% into a decimal:
12% -> [tex]\frac{12}{100}[/tex] -> 0.12
Next, lets plug in the values:
[tex]A=8,000(1+\frac{0.12}{1})^{1(7)}[/tex]
[tex]A=17,685.45[/tex]
After 7 years, you will have $17,685.45
