Answer:
[tex]\$2,565.78[/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=8\ years\\ P=\$1,000\\ r=12.5\%=12.5/100=0.125\\n=1[/tex]
substitute in the formula above
[tex]A=1,000(1+\frac{0.125}{1})^{1*8}[/tex]
[tex]A=1,000(1.125)^{8}[/tex]
[tex]A=\$2,565.78[/tex]
