Answer:
The future value is [tex]\$4,407.98}[/tex]
Step-by-step explanation:
we know that
The compound interest formula is equal to
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
where
A is the Final Investment Value or Future Value
P is the Principal amount of money to be invested
r is the rate of interest in decimal
t is Number of Time Periods
n is the number of times interest is compounded per year
in this problem we have
[tex]t=5\ years\\ P=\$3,000\\ r=8\$=8/100=0.08\\n=1[/tex]
substitute in the formula above
[tex]A=3,000(1+\frac{0.08}{1})^{1*5}[/tex]
[tex]A=3,000(1.08)^{5}[/tex]
[tex]A=\$4,407.98}[/tex]
