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Sagot :
SOLUTION
Given the question, the following are the solution steps to answer the question.
STEP 1: Write the formula for calculating the compunded amount
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]where
A = final compunded amount
P=initial principal balance
r=interest rate
n=number of times interest applied per time period
t=number of time periods elapsed
STEP 2: Write the given values
n will be 1 since it is compounded anually
[tex]P=12000,r=\frac{8}{100}=0.08,n=1,t=4[/tex]STEP 3: Calculate the compounded amount
[tex]\begin{gathered} A=12000\times(1+\frac{0.08}{1})^{1\times4} \\ A=12000\times(1+0.08)^4 \\ A=12000(1.08)^4 \\ A=12000\times1.36048896 \\ A=16,325.86752 \\ A=\text{\$}16,325.87\text{ to the nearest cents} \end{gathered}[/tex]Hence, the compounded amount after 4 years is approximately $16,325.87 to the nearest cents.
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