Answer:
[tex]\$18,453.78[/tex]
Step-by-step explanation:
The compound interest formula is equal to
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
where
A is the Final amount owed
P is the amount borrowed
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=7\ years\\ P=\$8,000\\ r=12\%=12/100=0.12\\n=12[/tex]
substitute in the formula above
[tex]A=8,000(1+\frac{0.12}{12})^{12*7}[/tex]
[tex]A=8,000(1.01)^{84}[/tex]
[tex]A=\$18,453.78[/tex]
