Answer :
Answer:
$16,326
Explanation
A = P(1 + r/n)^(nt)
Where:
A = final amount
P = principal amount (initial deposit)
r = annual interest rate (in decimal form)
n = number of times interest is compounded per year
t = number of years
In this case, Juanita deposited $12,000, the interest rate is 8% (or 0.08), and the interest is compounded annually for 4 years.
Plugging these values into the formula, we have:
A = 12,000(1 + 0.08/1)^(1*4)
Let's break down the calculation step by step:
Divide the interest rate by the number of times interest is compounded per year:
0.08/1 = 0.08
Add 1 to the result:
1 + 0.08 = 1.08
Multiply the result by the number of times interest is compounded per year (which is 1 in this case):
1.08^1 = 1.08
Raise the result to the power of the number of years:
1.08^4 ≈ 1.3605
Finally, multiply the result by the principal amount:
A = 12,000 * 1.3605 ≈ $16,326
Therefore, at the end of 4 years, Juanita will have approximately $16,326 in her account.
