Answer:
a; she will have $8812
b: It will be enough for her trip
Step-by-step explanation:
In this question, we are tasked with calculating how much a certain value in a savings account that is earning an interest that is compounded annually will be worth.
To calculate this, we use the compound interest formula;
A = P([tex](1+r/n)^{nt}[/tex]
Where A is the amount after that number of years which of course we want to calculate
P is the principal amount which is the amount we are investing which is $6439 according to the question
r is the interest rate which is 4% = 4/100 = 0.04
t is the time which is 8 years
n is 1 which is the number of times interest will be compounded annually
We plug these values as follows;
A = 6439(1 + 0.04/1)^8
A = 6439(1.04)^8
A = $8,812.22
This amount is greater then the needed $8,500 for the trip and of course it will be enough
