$1,000 is invested at a rate of 3.25%, compounded annually. Identify the compound interest function that models the situation. Then find the balance after 8 years.
The compound interest formula is given by: A=P(1+r)^n P=principle r=rate n=time
But: P=$1000, r=3.25%, n=time thus the function representing this will be: A=1000(1+3.25/100)^n A=1000(1.0325)^n Thus the amount after 8 years will be: A=1000(1.0325)^8 A=1,291.58 ANSWER: 1,291.58
